How Much Does it Cost to Build a Loan App Like Paysense

The demand for money-lending apps, like the Paysense app, has increased recently.

These mobile applications are convenient, fast, and easily accessible for the users.

The COVID-19 pandemic has further boosted their popularity, with more people turning to digital channels for financial services.

One of the standout apps in this category is PaySense, which has easy-to-use features and quick loan approvals.

PaySense has set a benchmark among instant loan apps by offering loans for personal needs, travel, and medical emergencies.

The blog discusses how money-lending apps like PaySense function, their prime features, and their advantages to users and lenders alike.

Additionally, we’ll guide you through the steps to build a loan app, the tools needed for development, and the costs of creating a solution like PaySense.

Overview of The Global Loan Apps Market

The global economy is growing year after year. Digitalization drives growth in the financial services sector by enabling faster loan issuance, mitigating risks, and enhancing customer service.

Analysts estimate that the global market for money lending platforms will reach almost $10.91 billion by the end of 2024. This volume is projected to grow annually at 26.53% through 2030.

Users have increased by 25% because more people can manage administrative tasks without physical meetings. By the end of 2024, about 3.6 billion people will access online banking and loan services.

Banks, trending future businesses, and other financial institutions, such as insurance companies, credit unions, and associations, have gradually adopted money lending applications over the past few years.

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What is a Paysense App?

PaySense provides loans ranging from ₹5,000 to ₹500,000, with an Annual Percentage Rate (APR) of 18% to 36% (on a decreasing balance basis) and a processing fee of up to 3.5% on the principal loan amount.

PaySense offers instant loans with durations ranging from 3 months to 60 months.

However, an app like Paysense may raise many doubtful questions in a user’s mind, such as ‘Is Paysense RBI approved?’ or ‘Is Paysense real or fake?’. Questions like these are cautious and understandable.

So, to answer your questions, Paysense is a real loan app officially registered with the RBI.

According to KPMG and H2 reports, the Paysense app ranks amongst the top 100 fintech innovators in the world. Over 5 million users have downloaded the PaySense app for instant personal loans and other financial needs.

These include salaried loans, vehicle loans, consumer loans (mobile, laptop, washing machine, camera, etc.), marriage, travel, short-term, and medical emergency loans.

Additionally, by offering one of the fastest online loan approvals to Indians for personal loans, PaySense allows its customers to benefit from favourable situations such as Low interest rates, Handy and moderate EMIs with a 2-minute loan application process, paperless documentation, and more.

Recognizing the benefits of the PaySense app, non-financial companies are increasingly considering similar financial software development for fintech businesses.

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How Does an Instant Loan Application Like Paysense Work?

To understand how a loan money lending app works, let’s outline very simple cases of user scenarios:

Let’s observe all phases of getting a loan to keep things simple:

☑️ The user downloads the money lending app from the iOS App Store or Google Play Store.

☑️ Users then sign up by logging in with their ID and password.

☑️ Adds required personal information to confirm creditworthiness.

☑️ Selects a loan from the app catalog using filters.

☑️ Applies for a loan, specifying the amount of the credit and the period for which it is expected to be repaid.

☑️ Connects their bank account to which the loan will be credited.

☑️ Receives approval and completes the process.

This is the main scenario while using a money lending app. Let’s see must-have features that implement this process in your app.

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Benefits of Money Lending Apps for Users

Before getting to how to create a money lending app, let’s briefly analyze why they are convenient for borrowers.

👉 Lending apps help make life easier for the customer by minimizing contact with banks and other financial organizations.

👉 Clients can access loans anywhere in the world without visiting a physical office.

👉 Users can instantly manage loans and cash receipts.

👉 Personal and financial information is safe.

Benefits of Loan Apps Like Paysense for Lenders

Mobile apps have various benefits for businesses as well. Since the lenders are banks and credit unions, they obtain interest from lending out their deposits and gain an advantage from multiple users of money lending applications.

Here are some of the benefits for Lenders:

There is no need for personal contact with customers; therefore, lenders incur lower operating costs and can focus on servicing and increasing the number of loans.

Lenders use KYC or ‘Know Your Customer’ to protect themselves from scammers who exploit the lending app for money laundering or other schemes.

More extensive market coverage.

Enhanced credit products with AI in finance capabilities and more clients to attract.

Must-have Features of a Loan App Like the Paysense App

Here are some of the significant features that your loan app must have:

1. Registration

Developers should ensure that registration is easy, allowing users to sign up effortlessly while meeting safety requirements.

It is better to ensure that the user inputs a complex password and that the authentication is successful; you can also provide them with the option of connecting biometric data verification.

2. User Profile

The app saves all information about the user’s data here. It contains credit card information, bank account information, government-issued IDs, and other important data.

3. Loan Application Form

The loan application form serves as the main role of the instant loan application. It needs to be logically structured step-by-step.

Your application may remind users of these steps, present the results of each action taken, and prompt them on what to do next about filling out the form.

The app’s system bases the credit decision on the credibility of the provided information.

4. Payment System Integration

Your application should be coupled with various payment methods: UPI payment apps, bank debit, or credit cards. This way, users would have more flexibility when it comes to pay-as-they-please.

5. Payment Log

Here, the user could review payment history, view pending payments, and fix the remaining balance of the debt. Integrating a calculator to display changes in the loan terms when prepayment is made is an interesting idea.

6. Notifications

Push notifications can inform users about upcoming payments, loan opportunities, and refinancing promotions. Additionally, syncing the app with smartphone widgets can enhance user convenience.

7. Transactions

After taking out a loan, the debtor can pay both interest and the full amount of the debt in monthly installments.

At this point, the app may also enable users to link their bank accounts or digital mobile wallets for loan payments and set up autopayments.

8. Support Service

This can be a conversation with the technical support service, which will assist the customers in using the cash lending application. You can also engage a lending manager to guide users on credit products.

9. AI-based Analytics

Users and admin will benefit from real-time analytics. Moreover, the admin will have the right to check the platform’s operation using AI and big data technologies.

10. Chatbot Integration

This feature will allow borrowers and lenders to communicate through an in-app AI Chatbot without exchanging contact information.

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What are the Steps for Developing a Loan App like Paysense?

Here are some of the major steps of developing an app like the Paysense App:

1. Market Research and Feasibility Analysis

Conduct extensive market research to know your target audience and what they seek. Analyze the competitors, like PaySense, regarding features and business models.

Research the financial regulations of your target market, such as RBI guidelines in India, to ensure your app complies with all legal requirements.

This step ensures your app aligns with user expectations, industry standards, and the latest mobile app development trends.

2. Outline Features and Business Model

Features in your app should entail basic features like user creation, loan calculators, credit linking, loan applications, and EMI management.

The features, such as AI-based credit scoring, multi-languages, and financial education tools, may give you an edge compared to competitors for your business model.

This may include revenue through interest rates, processing fees, or partnering with the financial services industries to form a sustainable model.

3. UI/UX Design

Engagement requires an intuitive and user-friendly interface. A mobile-first approach ensures compatibility with both iOS and Android platforms.

Secure login options like biometric authentication should be added, and navigation needs to be as simple as possible.

The UI/UX Design should reflect reliability and trust through proper security features.

4. Choose Technology Stack

Choose technologies that are scalable and performance-driven. For frontend, choose Flutter or React Native or opt for native with Swift programming language and Kotlin.

Use technologies like Python, Node.js, or Java programming language with frameworks like Django or Spring Boot in the back-end./

There is a list of databases like MySQL or MongoDB that you can use to host it using cloud services like AWS or Google Cloud.

5. Development Process

Start with developing a strong back-end that supports easy data management and API development or integrations. The team should develop a responsive frontend for the mobile application.

Third-party APIs are incorporated for gateways, credit checks, and notifications.

Encryption protocols safeguard user data, ensuring safe handling and compliance with data protection laws.

6. Testing and Quality Assurance

Testing is important to ensure that the app performs without a hitch. Conduct functional testing of each feature, performance testing under heavy loads, and security testing to identify vulnerabilities.

The final stage is to let beta users do user acceptance testing to have real feedback and fine-tune the app before its launch. QA testers even use AI in quality assurance checks.

7. Launch and Deployment

Launch the applications to the App Store and Google Play Store, adhering to the specific requirements.

If your solution includes an admin panel hosted in a web-based manner, deploy it using reliable services like AWS or Azure.

Follow-up with marketing strategies and promotion campaigns can be made through social media and paid ads.

8. Post-Launch Support and Maintenance

Monitor the app’s performance right after the launch and debug any bugs or technical issues on time. It keeps the app relevant and competitive based on users’ feedback from time to time.

Besides, optimize your infrastructure to face increasing user demands and scale efficiently as your user base grows. However, this indeed adds to the app maintenance cost.

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What is the Tech Stack For a Loan App Like Paysense?

There is a list of tools used to create a mobile application. A tech stack consists of tools and new technology in banking and finance for mobile development.

It will determine your lending application’s feature set, performance, scalability, and compatibility. Plus, it will contribute greatly to the security and sustainability of your service.

We have elaborated on the most feasible tech stack for a mobile lending solution based on our experience:

Mobile

Swift, Kotlin, Core Data

Back-end

PHP, jQuery, Node.js, Java Spring Boot, Swagger, AWS, Firebase, Twilio

Frontend

React/Redux, TypeScript, HTML5, CSS4

Analytics

Google Analytics

DevOps tools

Datadog, Kubernetes, GitHub, Atom, Visual Studio

Design tools

Figma

Database

MySQL, PostgreSQL, MongoDB

Business tools

Slack, Microsoft Teams, Zoom, any mail agent like Gmail or Microsoft Outlook

These tools have been proven efficient for lending software development. If you have particular technical requirements for your project, feel free to contact us to discuss them.

Monetization Models for a Loan Application like the PaySense App

Here are some of the best monetization models for the loan applications:

1. Monetize the App With Ads

You can monetize the app through mobile banners, in-app ads, rewards for an app, and gamified In-app ads.

A great example would be Google ads marketing.

Rewarded advertising greatly impacts people, as app users receive extra points or vouchers to avail themselves of loans at discounts.

2. Subscription Method

This is one of the popular methods for overcoming the Fintech app development cost.

This subscription monetization model generates revenue by charging users a recurring fee at regular intervals.

Here, your app may require a monthly and annual membership charge rather than a one-time purchase. Users pay repeatedly at intervals that grant them access to loan-lending services.

3. Affiliate Marketing

Affiliate marketing is one of the trending techniques that overcome the growing cost of a loan lending app. In this technique, affiliates receive a commission for each visit or sale they generate.

It may be an efficient method for enhancing user engagement with loan lending apps.

Conversely, business owners earn a commission on the sale for affiliate marketing, generating a steady income source.

4. Monetization with Data Licensing

Data monetization is a method to monetize the data gathered from the application instead of money./

This data can be used to learn more about the customers and their changing preferences.

However, many popular brands buy this data to create reports on user behaviours related to using apps, with the explicit users’ consent.

5. In-app purchases

In-app purchases enable users to buy more features, services, or content.

This monetization method will not only help cover the development cost of loan-lending apps but also provide a steady source of revenue.

Here, users are given some basic features within the application. Once they become familiar with app services, they are requested to pay an extra amount to use premium features or services.

However, ensure a robust payment gateway integration for smooth transactions.

6. Partnerships and Sponsorships

You can match the loan lending app with diversified sponsors, and you may find the return goes beyond immediate revenue generation.

This will serve them long-term gains, superior brand perception, and user retention, contributing to overall success and brand sustainability.

In these, you can reach out to the fintech firms, thus forming partnerships to reach potential users.

When you decide to develop an app like Paysense, it’s obvious to search for a trusted app development team.

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Factors Affecting the Development Cost of a Loan Application like the Paysense App

Here are some of the factors affecting the Loan or any other Fintech app idea cost:

1. Partnership Type

You can choose either strategy: hire all the tech specialists as permanent members of your company or hire an Android or iOS app development company.

A full in-house team, including back-end developers and more, is easier to communicate and control in a financial company while very expensive.

Collaborating with a third-party agency is cost-effective. However, you may also risk security concerns because your app will closely work with private user data.

2. Development Complexity

The more functionality you want to implement, the more time and money you will waste making that mobile loan app.

This requires thorough discussion and planning before beginning the Android or iOS app’s design and development processes.

3. Complexity of Design

While functionality is crucial for lending app users, prioritizing user experience (UX) and user interface (UI) design is essential for success. Create a robust UI/UX designer roadmap for a smooth functioning app.

UX deals with creating a way people will navigate inside your app, while UI is meant to make it pleasing to the eye.

4. Platform Selection

Build your app natively or utilize cross-platform app development frameworks. Cross-platform means it will have the same codebase across iOS and Android and run on both.

A native app will have a different codebase for each platform, so technically, you’ll need to build two solutions: one loan app for Android and another one for iOS. Here, your choice will depend mostly on your initial requirements.

5. Tech Stack

The technology stack directly impacts the application’s development costs, including databases, programming languages used for app development, and frameworks.

The tech stack comprises the frameworks, APIs (gRPC vs REST API), databases, end and back-end tools, and all programming languages.

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What is the Cost of Developing an App Like Paysense?

Developing a money lending app may cost between $25,000 and over $100,000 depending upon factors such as the functionalities and features of the app.

To learn more about app making charges of an app to lend money, check the image below, which mentions the direct factors impacting the app development cost.

Here is a table breaking down the cost based on some of the major factors:

How Can Arramton Infotech Can Help You Build A Loan Application Like Payesense?

Arramton Infotech specializes in custom mobile app development, creating innovative, scalable, and user-friendly loan and banking apps.

Our expertise in fintech app development will help us develop a money-lending app like the Paysense app for you in this competitive market.

We will handle the development process from market research to marketing promotions to support the application post-launch period.

Our developers are skilled enough to provide customized solutions, from safe user registration to AI-driven analytics integrated into the application.

Whether you are indulging in Fintech startup ideas or are an established business already, we will deliver you a high-quality application with features customized as per your preference.

With Arramton Infotech, you can transform your vision into a feature-rich, reliable loan application that empowers users and drives business growth.

Conclusion

Loan applications like PaySense have made lending easier for both borrowers and lenders. The application provides a seamless experience through its digital tools and advanced technology.

If you wish to create an app just like Paysense, you must determine its core features, user benefits, and the overall development process and cost.

If your market research succeeds, a strong tech stack and an efficient monetization model will be enough to achieve an app like Paysense.

Furthermore, Arramton Infotech, an iOS and Android app development company, will assist you throughout the development process and establish your development cost.

Connect with us Today!

Frequently Asked Question

Q. Is Paysense RBI registered?

Ans: Yes, Paysense is registered with the RBI. NBFCs registered with RBI, like Credit Saison India, SMFG India Credit, PayUFinance, and IDFC First Bank, collaborate with the Paysense app.

Q. Is Paysense Safe to Use?

Ans: Yes, the Paysense app is safe to use, as it’s registered with a government entity such as the Reserve Bank of India. It protects sensitive information through advanced security encryption, not allowing data-sharing with third-party entities. It ensures that the users’ usage is a safe experience for them.

Q. How long does creating a loan app like Paysense take?

Ans: It depends upon the complexity of the app’s features. The time for basic app development may take 3 to 6 months. However, a feature-rich application with advanced integration may take over a year to create a loan app.