ben brown

January 13, 2023

Business

6 Ways BNPL Can Scale With Custom Software

ben brown

January 13, 2023

Business

Have you ever found yourself in a tight spot, needing to make a purchase but not having the funds available to pay for it upfront? This is a common situation for consumers globally, especially in today's world.

These situations are uncomfortable and inconvenient, to say the least, but they are the kind of problems that FinTechs work tirelessly to solve. It’s reached a point where the solution is there but innovation is needed for it to consistently adapt.

As we’ve discussed here before, BNPL is one of the biggest advancements we’ve seen in FinTech to date. To jog your memory, buy now, pay later (BNPL) services allow you to make purchases and pay for them incrementally rather than upfront.

These services have gained traction in recent years with increasing demand which has made the market highly competitive. To reap the rewards of this market, BNPL providers need to differentiate themselves and innovate, and the use of custom software is one of the best ways for them to do that.

What is Custom Software?

Many may not know exactly what it means for businesses to use custom software and if that’s the case, then we need to cover that first. Custom software is software tailored to the needs and goals of any organization.

For BNPL providers (or any financial service provider), custom software can perform in ways that simplify and optimize operations, such as handling the processing and installing of payments (just one example).

Custom software solutions can also allow BNPL providers to offer unique and innovative features that set them apart from their competitors (essential). For example, a provider could use custom software to create a rewards program or to offer personalized payment plans based on a customer's specific financial circumstances.

How is it Built?

This all sounds great and useful, but we want to know what makes this possible. So now we’re going to go over some of the coding languages commonly used specifically for creating BNPL services:

JavaScript: JavaScript is always going to be on the list when it comes to your best options for programming, especially in the financial industry. It’s well-suited for BNPL applications because it can be used to create a dynamic, interactive UI and to process payments on the front end of a web application.

Python: Just like Java, Python is a regular popular choice and is one of the most versatile and powerful programming languages best used for data analysis and machine learning. A few specific features that BNPL companies can use Python for include fraud detection, credit risk analysis, and other data-intensive tasks.

SQL: SQL (Structured Query Language) is a domain-specific programming language used for managing and querying relational databases. Simply put: SQL is a powerful and efficient way to handle the storage, retrieval and manipulation of data, especially when it comes to transactional data in BNPL companies. Using SQL, BNPL companies can access and process user data such as their purchase history, order status and payment history to name a few.

Choosing the right programming languages especially when it comes to the automation and streamlining of tasks involving complex data is essential. It not only ensures that the software is optimized for performance and scalability but also supplies the tools and capabilities needed to handle the requirements of business operations.

How It Changes The Customer Experience

When it comes to financial technology in general, a secure infrastructure is foundational to delivering a seamless user experience. If someone has chosen your platform to make their lives easier, you not only want to but need to offer the best possible platform to build that credibility that keeps them coming back. Here are some ways that software allows this to happen:

Checking Out: Custom software enables BNPL providers to provide an easy checkout experience, with low-friction and simplified checkout forms, which make it more convenient for customers when they shop. Additionally, custom software enhances the security of these payments.

Easy-to-use Mobile App: BNPL providers that use software to create a mobile app make it convenient for their users to make purchases and manage their accounts from anywhere. In the United States alone, it is said that 1 in 3 consumers prefer mobile over any other mode of shopping.

Rewards Program: We briefly mentioned it earlier, but you should know that custom software can enable BNPL providers to create a rewards program. How this program works will depend on the business's vision but it can certainly make the BNPL experience more appealing and add value for customers.

The Takeaway

Using custom software has become pivotal for BNPL providers to stay competitive in this market, which is expected to grow at a rate of over 70% annually. By tailoring software to the organization's specific goals, BNPL providers can stand out by offering unique, innovative features. But like we always say, this starts with analyzing your business and what the vision is for it long term. Everything after that is best situated by consulting with a professional team once you’re ready to take action and implement.

Written By Ben Brown

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ISU Corp is an award-winning software development company, with over 17 years of experience in multiple industries, providing cost-effective custom software development, technology management, and IT outsourcing.

Our unique owners’ mindset reduces development costs and fast-tracks timelines. We help craft the specifications of your project based on your company's needs, to produce the best ROI. Find out why startups, all the way to fortune 500 companies like General Electric, Heinz, and many others have trusted us with their projects. Contact us here.

ben brown

January 9, 2023

Business

How Big Companies Can Benefit From Outsourcing Software Development

ben brown

January 9, 2023

Business

Long days, longer nights, headaches for breakfast, and no sign of relief. This is the ugly sight of taking on a new project without proper guidance. We’ve all been in this position at one point or another. Whether it’s shown up in your personal or professional life (or both) will dictate your understanding of just how necessary guidance is.

In the land of technology, being underprepared when taking on a software development project can lead to stress and wasted time. And what’s even scarier here is that this is something that, when done improperly, will hurt your company's wallet. For this reason, companies outsource.

Outsourcing software development is a cost-effective and efficient way to bring new products and features to market, especially for large enterprises. By partnering with a third-party software development company, a large enterprise can tap into a pool of talent and resources that would otherwise remain out of reach.

4 Ways This is Made Possible

Time-to-market: Outsourcing software development can help a large enterprise bring new products and features to market faster. The software development company can handle the development process, freeing up the enterprise to focus its energy on other tasks.

Cost: Compared to scouting and recruiting in-house developers, outsourcing software development can be far more cost-effective, especially if your enterprise is located in an area with a high cost of living. By outsourcing, an organization now has access to an array of talent and can offer competitive pricing.

Access to specialized talent: Many software development companies are going to have a team of developers with a wide range of specialized skills and expertise. This can be especially useful for a large enterprise that needs to develop a complex software solution, implement new technology that they’re unsure how to materialize, or if they simply need proper guidance.

Flexibility: Outsourcing software development allows a large enterprise to be flexible and scale its development efforts up or down as needed. This can be especially useful for companies with fluctuating demand or those that need to quickly respond to changes in the market.

Entities Who Outsource

We could sit here and dish out every little detail of why outsourcing development will help you and your business, but why not just show you? Some large enterprises that have benefited from outsourcing software development include IBM, which outsourced the development of its Watson artificial intelligence platform, and General Electric, which outsourced the development of its Predix industrial internet of things platform. Other familiar names include:

Google
Apple
Oracle
Amazon
Facebook

This list is undoubtedly just the tip of the iceberg, but it gives you a sense of how the biggest and most successful companies use outsourcing as a resource to remain the best at what they do. It’s a competitive market, especially in the digital realm where the demand for skilled talent is high and lucrative for businesses.

How It Can Be Applied

Getting started when it comes to a new software development project is more often than not the hardest part. Commonly, this is simply because the project has been overthought or there is still a level of uncertainty. When this is the case, it requires company leadership to resort back to the basics which include:

Defining the goals of the new system
A comprehensive evaluation of all options for outsourcing providers
Outlining and communicating expectations
Tracking progress

Outsourcing can provide many benefits, but to reap the rewards, these are the kinds of operating procedures that need to be in place. Again, like anything in business, for this to work, it requires leadership to be aligned with the goals of the project.

The Takeaway

There are no shortcuts to success in business— or anything for that matter, even in a world where resources are abundant. There is only hard work that can solve the problems of an organization. To prioritize quality in all aspects, you may have to leave certain things up to others to ensure it gets done right and that your business can focus its efforts where it counts.

Written By Ben Brown

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ben brown

January 6, 2023

Business

5 Industries Using Embedded Financial services in 2023

ben brown

January 6, 2023

Business

Embedded financial services, commonly referred to as "banking-as-a-service," is a business model where financial services are integrated into the products and services of non-financial companies. As we are now in 2023, we can expect this model to become even more prevalent as companies are consistently seeking ways to add value for their customers in addition to streamlining their operations.

That’s a lot to take in from the jump but it covers the basic idea of how BaaS fits into the generic landscape of businesses. This is yet another versatile piece of technology that can transform an organization's operations from the ground up.

2 Leading Factors Behind the Adoption

Demand for convenience: The first key driver behind the growth of embedded financial services is the increasing demand for convenience. Customers today expect to be able to access financial services on their own terms. To accommodate this, companies must offer flexible, high-performance experiences that allow users to manage their finances from anywhere, at any time. By integrating financial services directly into their products/services, companies can provide a one-stop-shop experience.

Data privacy and security: As data breaches become more common and customers become more concerned about the handling of their personal information, companies that can ensure and offer secure financial services are likely to be more attractive to consumers. By embedding financial services into their products and systems, companies can better control and protect their customers' data, which can give them greater confidence in using their services.

How Companies Are Capitalizing

There are several different ways that companies can use embedded financial services to benefit their customers as well as their operations. Every industry is searching for the best way to apply this. With that said, here are 5 that have found some success in doing so:

E-commerce: Many e-commerce companies, such as Shopify and Amazon, offer embedded financial services like financing options and payment processing. This allows customers to make purchases and pay for them over time, rather than having to pay upfront, which can increase sales and customer satisfaction (BNPL).
Travel: Companies in the travel industry, such as Expedia and Airbnb, often use embedded financial services to offer a range of payment options, one of which includes the ability to pay in different currencies. This can be especially useful for travellers who are visiting a country for the first time and aren’t familiar with the local currency.
Retail: Retail companies, such as Target and Walmart, are using embedded financial services to offer customers more convenient ways to pay for their purchases. For example, Walmart allows for payment through its mobile app, Walmart Pay, which allows customers to simply make purchases using their smartphone.
Technology companies: This one may not come as a surprise, but tech companies, such as Apple and Google, are using embedded financial services to offer financial products, such as credit cards and mobile banking apps. This allows them to expand their customer base and generate even more streams of revenue.
Telecommunications companies: Telecommunications companies, such as AT&T and Verizon, are using embedded financial services to provide direct access to financial services such as mobile banking and payment. This is great for increasing customer loyalty and retention.

The Takeaway

As we can see, it’s clear that embedded financial services will continue to play an important role in the economy during 2023 and in the years to come. As companies try to provide more value for their customers and streamline their operations, the integration of financial services into their products and services will continue to prevail.

The hardest thing to do as a company with long-standing operating methods is to implement change. However, in this day and age, change is inevitable for those who plan to capitalize on the modern market.

Written By Ben Brown

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