July 24, 2024
Grocery Delivery App Development

Buy Now, Pay Later: Grocery Delivery App Development

Buy Now, Pay Later (BNPL) has increasingly become popular in Grocery Delivery App Development circles since the early 2010s. It is a financial service that was made to cater to young generations who are facing difficulties with credit cards with high fees. Considering its current popularity, BNPL is no longer an alternative payment method but the primary one. In this blog, learn how it works and how to add it to your grocery app business.


The growth of BNPL among Gen Z and Millenials has grown 600% since 2019. Mainly because it allows consumers to make a purchase without paying for it. Here, these payments are made in installments. When used strategically, BNPL can improve conversion rates, increase customer spending, and create a competitive edge in the market.

By choosing BNPL as the preferred payment, your customers agree to pay the full price of the groceries in multiple installments over a specified period instead of paying it all upfront. These installments can vary in frequency and duration depending on the total price of the groceries. Adding the BNPL feature to your grocery business generates additional revenue if payments are not made on time.

Use Of BNPL In Grocery Delivery App Development

You can even set up an automatic deduction payment setup feature to deduct the agreed-upon installment amount on the scheduled dates. Furthermore, by offering BNPL options at the checkout, grocers also reduce cart abandonment rates. Customers who are hesitant to complete their purchases due to budget constraints can add more items to their cart since they can pay for them in installments.

Understated Regional Markets 

BNPL services first took off in the US, then Canada, and then larger Western European countries. In 2023, consumer interest and usage rates are expected to make BNPL cover other markets and regions.

  • In Poland, BNPL payments have grown by 70.9% annually.
  • In Australia, around 17% of all transactions in 2023 are expected to be paid for in installments.
  • In South Korea, BNPL payment adoption is likely to increase at a CAGR of 27% during 2022-2028. 

In regions like the Middle East, where banking services have not seen much light, BNPL providers are witnessing a surprising path to adoption.  Selecting a smaller regional market as a target launch place can validate your idea and secure early traction before the market becomes competitive.

How To Integrate BNPL feature?

Integrating a “Buy Now, Pay Later” (BNPL) feature into an app involves working with a grocery delivery app provider. You must research and select a reputable provider to provide business details and financial information at the early stages of app development. In return, these grocery delivery app service provider offer developer resources, including APIs, SDKs, and documentation. Through these resources, you can understand how to integrate BNPL services into your app.

At this stage, the process of integrating the BNPL feature into your grocery app will start to take shape according to the UI/UX of the app. Since it should be present at the checkout process, the app developer will add the BNPL option beside other payment options for better clarity. Finally, you can test the BNPL integration to ensure it works as expected. Try using different transaction amounts and payment schedules for maximum results.

Things To Look Out Before Integrating BNPL

BNPL, being a financial service, often involves the transference of sensitive financial data that could be breached during transactions. Your grocery business must have an app developed with a robust foundation that complies with financial industry regulations. This includes encryption, data protection, and compliance as well. You must also educate your customers about the BNPL option to fully take advantage of it.

Clear explanations of its workings, payment schedules, fees, and terms and conditions are crucial for transparency standards. There also exist customer support channels that directly encounter various BNPL issues through in-app chat, email, and a helpline. Lastly, you must actively promote the BNPL feature in your grocery app through marketing campaigns, banners, and push notifications. Not only will it increase user awareness, but you’ll also gather user feedback and make improvements as needed.

What Significance Do BNPL Features Hold In Buying Groceries?

The impeccable end-user experience is a strong selling point for BNPL platforms. BNPL allows budget-conscious customers to attain financial flexibility with seamless UX integration. When managing household expenses, BNPL is a viable option, especially during unexpected emergencies such as medical bills or car repairs.

In other words, your customers can buy groceries without compromising other essential payments. Additionally, you can minimize your risk exposure by placing minimal limits on these users who provide only essential information. 

People with steady incomes may be more inclined to make larger purchases, stock up on essentials, or take advantage of sales and discounts when paying in installments. Here, they can buy what they need when needed and spread the cost over time. For this, you can request extra credit information at later stages or extra flexibility in repayment cycles.

In other words, your customers can focus on their shopping lists without worrying about immediate payment. This can lead to increased spending than usual. Lastly, by offering this feature, grocery apps can attract a broader demographic, including tech-savvy millennials and gig economy workers.

The Future Of BNPL In The Grocery Delivery Business

The global BNPL market is expected to keep growing by nearly $450 billion USD between 2021 and 2026. BNPL fintechs reached a global market share of around 3%, projected to increase to 9% by 2024. The threat of BNPL piping credit cards is also substantial, ultimately making access to credit more decentralized, democratic, and inclusive.

McKinsey further forecasts that BNPL financing will account for 13-15% of unsecured lending balances in the US in 2023. As long as users plan out their purchases and pay off all installments on time, there is no reason why they can’t enjoy this service.


As credit cards continue to decline, modern BNPL Grocery delivery app development services are quickly gaining popularity. As a result, they are integrated into the checkout process with priority. Moreover, customer retention and reduced risk of return, coupled with enhanced marketing strategies, are encouraging other delivery industries to add this feature as well.

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