Jun 45 min read

Level Up Your Buy Now, Pay Later Apps: A Comprehensive Guide for a Winning Gamification Strategy

Is your customer abandoning items in the cart due to the purchase’s financial burdens? Buy Now, Pay Later (BNPL) apps have been a game-changer in resolving these cart-abandonment situations.

BNPL apps allow users to make purchases and make smaller, manageable payments, thus making them a popular choice for today’s tech-savvy generation. These apps offer instant gratification without the guilt of over-spending.

The Mordor Intelligence Report forecasts a staggering potential for the BNPL segment.

93% is a great opportunity for the BNPL app developers. However, there is a challenge: differentiating your BNPL app from other similar apps. Initially, the download rates are higher, but the users drop off eventually due to the lack of sustained engagement. The key to this differentiation is user engagement, and I’m not talking about those monotonous loyalty programs.

This is where gamification in fintech apps enters the scene, making the mundane repayment exciting. It offers a fresh approach to capture user attention and build long-term loyalty.

Gamification in BNPL Apps

Ever wondered why you are glued to your game, striving to beat your high score or collect all the badges?

But, why does this work? Gamification feeds our human desires - like our need for achievement, recognition, and a sense of community. Earning points for completing financial tasks on your BNPL app can satiate your thirst for accomplishment.

For example, offer a “Money Master” badge for passing a financial quiz and list them on the leaderboard. It can give a sense of recognition and encourage friendly competition. This is a powerful motivation to consistently manage your finances responsibly compared to your peers on the leaderboard.

Why is Gamification Beneficial for BNPL Apps

Keeping your users devoted to your app is more than just offering them convenient payment options. Here’s why gamification is the perfect tool to achieve this with your BNPL app:

Your Target Audience Profile

Who is the target audience for your BNPL apps? It’s mostly the tech-savvy younger people. They are more inclined towards digital platforms, and gamification is probably a part of many of the apps they already use. These young tech-savvy users are not interested in static features anymore! Instead, they want engaging and interactive experiences.

Traditional Features are Monotonous

Traditional BNPL features, like repaying loans and managing finances, can be monotonous. They might initially download the app for a specific purpose, but they will not have a reason to come back. Gamifying your BNPL apps offers a solution to this challenge.

Gamification with Fun and Rewards

Gamification apps for businesses can transform tasks into a rewarding experience. Earning points for on-time payments, unlocking badges for achieving a savings goal, or competing with friends on a “smart spending challenge” are some examples.

With these elements, managing finances doesn’t seem like a chore. You can keep your users actively involved with your BNPL app by satisfying their sense of accomplishment when they make smart financial decisions.

Crafting a Winning Gamification Strategy for BNPL Apps

To make sure that gamifying finance apps becomes successful, certain strategic elements are essential.

Align with Your App Goals

The first step to a winning strategy is to clearly define the goals that you want to achieve with gamification. By aligning your gamification strategy with your app goals, you can ensure the success of your BNPL app.

Increase on-time payments
Encourage responsible spending
Boost app downloads and engagement

Based on your objective, you have to use appropriate gamification elements into your app to reinforce desirable behaviors.

Types of Gamification Elements for BNPL Apps

Moving to the game elements!

Points and Badges

Award points for making on-time payments or completing financial education levels. These points can then be redeemed for discounts or cash-backs coupons.

Challenges and Quests

Offer time-bound challenges to encourage specific behaviors. For example, a “Payment Milestone” challenge could earn early privileged access to a sale.

Leaderboards

Create leaderboards to induce friendly competition. Showcase users who have never paid a late-payment fee.

Social Sharing:

Your apps can allow social sharing where users can boast their achievements, which will motivate them and also serve as a word-of-mouth marketing.

Personalization is Key

There is no one-size-fits-all approach in successful gamification. Tailor the experience to each user segment. For example, saving for a vacation might be a motivation for a young professional, whereas saving more with discounts on clothing can be exciting for a person interested in shopping.

Analyze user data to understand these customer segments, their financial goals and preferences. By personalizing the gamification elements based on your user profile, you can make your BNPL app appealing and engaging to every user segment.

Successful Gamification in BNPL Apps

Here are some successful gamification in fintech apps, specifically in the BNPL segment.

1. Sezzle

Sezzle uses points systems and progress bars to keep users engaged. On-time payments, completing financial quizzes, and referring friends are rewarded with points. These points will contribute towards the progress bar. It will unlock exclusive rewards like early sale access or bonus points for future purchases.

Sezzle recently introduced the “Payment Streaks” feature that rewards users for making timely payments consistently. By gaining streaks, users climb up in their loyalty levels, open exclusive benefits. This further encourages users to maintain their responsible financial behavior.

2. Apple Pay Later

Apple Pay Later seamlessly integrates with Apple Wallet app, which uses a progress bar. It displays a progress bar for each Apple Pay Later purchase. This visual indicator keeps track of the user’s repayment status and motivates them to complete their payments on time.

3. Affirm

From early 2022, Affirm gamified the app by offering rewards, points, and cashbacks on customers’ transactions. In addition to these elements, Affirm prioritizes financial education by simulating situations and enabling the users to make hypothetical financial decisions.

The users would earn rewards and points for successfully completing various educational levels. Affirm also personalized this education based on individual data, like individual spending patterns and financial goals.

Best Practices and Considerations

Start small and improvise

Do not overwhelm the user with numerous gamification elements at once. Start with basic elements like points and rewards for on-time payments. Slowly move to complex elements that offer more excitement.

Focus on user experience

Gamification should not feel like a marketing gimmick or a fad to the user. It should provide real value, while making it exciting.

Track and analyze data

Continuously monitor user interaction with your gamification features and optimize accordingly. This feedback loop ensures the long-term success of your BNPL app.

Gamify your BNPL App for Long-Term Success

Gamifying BNPL apps is a strategic way to ensure long-term user engagement and loyalty. By incorporating appropriate gamification elements, you can make routine financial tasks fun and exciting for your users.

Create better user experiences and keep them coming back for more with gamification elements in your app. With the Flyy plug-and-play SDK, integrate these game mechanics seamlessly and get started in a matter of days.