A licensed lender or bank
Adds point-of-sale installments to an existing consumer lending book.
- Decisioning that reuses your credit policy
- Plans booked into your existing servicing
- Merchant onboarding and settlement as a new capability
Financial Services / Buy Now Pay Later
Buy now pay later software for lenders, fintechs and merchants
A BNPL product lives or dies at checkout, but most of its risk sits after it: refunds, partial returns, disputes and the rules each plan type triggers. Agnotic Technologies builds buy now pay later software that handles the whole plan, from the credit decision to the last installment and the merchant's settlement.
Checkout
SDK, hosted page or virtual card
Plans
Pay in four and monthly
Refunds
Schedules that adjust
Trusted by global innovators
Industry Overview
What is buy now pay later software?
Buy now pay later software lets a shopper split a purchase into installments at checkout after a credit decision. Agnotic Technologies builds it for licensed lenders, fintechs and merchants: checkout integration, point-of-sale decisioning, pay-in-four and longer plans, refunds that reshape the schedule, merchant settlement and the notices each plan type needs.
Who builds BNPL
Which BNPL program are you building?
The software is similar; the creditor, the rules and the integrations are not.
A fintech running a lending program
Owns the product and the customer, often with a bank or licensed lender as creditor.
- Clear records of which party is the creditor on each plan
- Data feeds and controls the program partner asks for
- Merchant SDK and app as the main product surface
A merchant or platform
Offers installments on its own checkout, alone or through a lending partner.
- Checkout and order data tied to each plan
- Returns and cancellations that update the plan
- Plan status visible to customer service
Industry Challenges
Where do BNPL builds get into trouble?
The checkout demo is the easy part. These are the failures we design against.
A partial return is refunded to the card, while the customer keeps paying the full original schedule.
A plan with a fee is built like a fee-free pay-in-four plan, so the wrong disclosures appear at checkout.
Declined applicants get a generic message, with no adverse action notice and no record of the reasons.
Card numbers for autopay are stored in the application database, which pulls every service into PCI DSS scope.
Merchant settlement nets refunds and fees by hand, so the merchant statement never matches the ledger.
Payment history is sent to credit bureaus without checks, and disputed plans are reported as late.
Plan type table
Which consumer credit rules apply to each BNPL plan type?
Our original element for this page: the three common plan types against their finance charge, the rules in view, what checkout shows and how a refund changes the schedule. Plan structure decides the rules, so your counsel confirms the current position for each plan before launch.
| Plan type | Finance charge | Consumer credit rules in view | What checkout shows | How a refund changes the schedule |
|---|---|---|---|---|
| Pay in four | None; a late fee for actual late payment is not a finance charge under 12 CFR 1026.4(c)(2) | Often outside the Regulation Z creditor test (no finance charge, four or fewer installments); Regulation B notices still apply to applications; counsel confirms the CFPB position | Installment amounts and dates, any fees and the autopay terms | Refund applied to remaining installments first, then returned to the customer |
| Longer monthly plan with interest | Yes, interest and any fees that are finance charges | Regulation Z closed-end disclosures: amount financed, finance charge, annual percentage rate, payment schedule and total of payments (12 CFR 1026.18); Regulation B | The Regulation Z disclosures before the customer commits | Principal reduced, interest and future payments recalculated under the plan terms |
| Merchant-subsidized plan | None charged to the customer; the merchant pays a fee | Depends on structure: counsel reviews whether any cost passed to the customer counts as a finance charge | Zero-interest terms and when, if ever, interest can apply | As for the matching consumer plan, with the merchant fee adjusted in settlement |
Our Approach
How do we build a BNPL product around its plans?
We start from the plan, because the plan type decides the disclosures, the notices and the refund logic.
Model plan types as configuration
Installment count, interval, fees, interest and the disclosure set live in versioned plan definitions, so a new plan is a reviewed change, not new code.
Treat the schedule as a ledger
Every refund, return, dispute and payment posts an entry against the plan, so the remaining balance and each installment can be rebuilt at any point.
Keep card data out of the core
Autopay cards are tokenized by the processor, so the plan and decision services never hold full card numbers.
Capabilities
What do our buy now pay later services cover?
We build the BNPL product layer. Payment application and statements are covered on our loan servicing software page, late accounts on our debt collection software page, credit model design on our credit risk scoring page and card processing on our payment gateway integration page.
Merchant SDK and hosted checkout
A drop-in checkout component, a hosted page for simple sites and server APIs for platforms.
Virtual card option
A single-use card number for merchants you do not integrate with, issued through your card program partner.
Point-of-sale decision service
Identity, fraud and credit checks run at checkout against your model and policy, with reasons stored for every decline.
Plan engine
Pay in four, monthly and merchant-subsidized plans built from versioned plan definitions.
Refund and return adjustments
Full and partial refunds, cancellations and disputes posted against the plan, with the schedule recalculated.
Merchant settlement ledger
Purchases, refunds, fees and reserves netted per merchant, with statements that tie to the ledger.
Autopay and card on file
Tokenized cards and bank accounts, retries on the schedule your policy sets and payment notices.
Notices and furnishing
Adverse action notices, plan confirmations and credit bureau files with accuracy checks before each submission.
How It Works
How does a BNPL checkout decision run?
The path from the merchant's checkout to a confirmed plan. Each step is logged with the plan version and decision reasons.
Checkout opens the offer
The merchant's SDK or hosted page sends the cart, amount and merchant identifier.
01
1
Customer is identified
Sign-in or a new application, with identity and fraud checks before credit.
02
2
Credit decision runs
Your model and policy decide; a decline records the specific reasons and queues the adverse action notice.
03
3
Plan options are shown
Only plans the customer qualifies for appear, each with the disclosures its plan type needs.
04
4
Plan is booked and the merchant is paid
The plan, first payment and autopay token are stored, the merchant order is confirmed and the purchase enters settlement.
05
5
Engineering Stack
Systems, standards and tools behind a BNPL build
Chosen to keep plan records replayable and card data out of the core services.
Checkout
JavaScript and mobile SDKsHosted checkout pageMerchant server APIs and webhooks
Core services
Decision servicePlan engine with versioned plan definitionsDouble-entry ledger for plans and settlement
Payments and data
Processor tokenization for cardsBank account paymentsCredit bureau furnishing files
Security and compliance
PCI DSS scope kept to the processor and token vaultSSO and role-based accessAudit loggingEncryption in transit and at rest
After the purchase
How does each post-purchase event change the plan?
The events that break most BNPL ledgers, and how the software posts each one. Exact rules come from your plan terms.
| Event | What changes in the plan | What the customer sees | Merchant side |
|---|---|---|---|
| Full refund before the first installment | Plan closed; any first payment returned | Plan shown as cancelled, with the refund amount | Purchase reversed in settlement |
| Full refund after some payments | Remaining installments cancelled; paid amounts refunded | A zero balance and the refund on the original payment method | Purchase reversed, fees handled per the merchant agreement |
| Partial return | Refund applied to the remaining balance; installments recalculated | A new, smaller schedule | Partial reversal in the next settlement |
| Dispute opened | Disputed amount held from collection while it is investigated | Dispute status and the amount on hold | Merchant asked for evidence; amount may be held |
| Order cancelled before shipment | Plan voided before it is furnished to any bureau | Plan removed | Authorization released |
Measured Impact
What should a BNPL team watch?
Operational views we build for risk, operations and merchant teams.
Declines
Decisions with reasons
Declines by reason, with the notices sent.
Adjusted
Plans changed after purchase
Refunds, returns and disputes posted this period.
Unsettled
Merchant balances
Purchases and refunds waiting for the next settlement run.
Rejected
Furnishing exceptions
Records held back from bureau files by accuracy checks.
Use Cases
Where do BNPL projects usually start?
First releases we scope, each small enough to launch with one merchant group.
01
Pay in four for one merchant
Checkout, decision, plan and autopay for a single merchant integration.
02
Refund and return handling
Plan adjustments added to an existing BNPL product that refunds by hand.
03
Merchant settlement
Netting, fees and statements that tie to the ledger.
04
Longer monthly plans
Interest-bearing plans with Regulation Z disclosures, alongside pay in four.
05
Buy now pay later for startups
A first plan type and checkout for a fintech launching with a lending partner.
06
Credit bureau furnishing
Accurate payment history files with checks before each submission.
Integrations
Which systems does BNPL software connect to?
The plan engine sits between the merchant's checkout and the lender's back office.
Purchases and returns
Merchant checkout and order system
Cards and tokens
Payment processor
Virtual cards
Card program partner
Applicant checks
Identity and fraud services
Reports and furnishing
Credit bureaus
Payments and statements
Loan servicing system
Settlement
Bank accounts
Plan status
Customer support tools
Compliance-First Development Services Backed by Global Standards
We build secure, scalable products designed for privacy, interoperability, and regulatory readiness from day one across every sector we serve.
Service Organization Control 2
Verified controls for security, availability, and confidentiality of enterprise data systems.
Information Security Management
Adhering to the international gold standard for managing information security risks.
Payment Card Industry (PCI DSS)
Securing payment transactions and protecting cardholder data with industry-best practices.
Our Edge
Why Global Leaders Choose Us
We combine deep technical expertise with industry-specific knowledge to deliver solutions that aren't just functional, but transformational.
Enterprise-Grade Security
We implement rigorous security protocols and compliance standards (HIPAA, GDPR, SOC2) across all industrial solutions to protect sensitive data.
High-Performance Scaling
Our architectures are built to handle massive data loads and user bases, keeping performance steady whether you're serving ten or ten million.
Accelerated Time-to-Market
Using our suite of internal tools and proven frameworks, we cut setup work so your first release reaches users sooner.
Embedded AI Integration
Beyond simple wrappers, we build deep-learning integrations and predictive analytics directly into the core of your industry-specific workflows.
Engagement Model
How does a BNPL engagement run?
We start with one plan type and one checkout. We agree a fixed first release on the scoping call.
01
Scoping call
Program structure, plan types, merchants and the systems already in place.
02
Plan and notice design
Plan definitions, disclosures and notices agreed with your compliance team and counsel.
03
Fixed-scope first release
One plan type live at one checkout, with decisions, autopay and refunds.
04
Settlement and furnishing
Merchant settlement and bureau files added on the same ledger.
05
More plans and merchants
New plan types and merchant integrations added as configuration and SDK work.
Facts and sources
Which rules shape BNPL software?
Short facts we design around, each linked to its primary source. The CFPB's position on BNPL has changed since 2024, so your counsel confirms the current position for each plan type before launch.
Regulation Z defines a creditor as a person who regularly extends consumer credit that is subject to a finance charge or is payable by written agreement in more than four installments, not counting a down payment, and to whom the obligation is initially payable.
Source: 12 CFR 1026.2(a)(17)(i) (eCFR)The CFPB's May 2024 interpretive rule on digital user accounts used to access buy now, pay later loans (89 FR 47068) is listed among the interpretive rules the Bureau withdrew, with the withdrawals applicable as of 12 May 2025.
Source: Consumer Financial Protection Bureau, 90 FR 20084 (govinfo.gov)Regulation B requires a creditor to notify an applicant of action taken within 30 days after receiving a completed application, and an adverse action notice must be in writing and give either the specific reasons or the applicant's right to request them.
Source: 12 CFR 1002.9(a)(1) and (2) (eCFR)Each furnisher must establish and implement reasonable written policies and procedures on the accuracy and integrity of the consumer information it furnishes to a consumer reporting agency, and review them periodically.
Source: 12 CFR 1022.42(a) and (c) (eCFR)
Voice of success
We don't just build products; we forge lasting partnerships. See how we've helped industry leaders transform their vision into technical reality.
“I can clearly see how Agnotic has a unique way of handling end-to-end development. They are always active on quick chat and provide support quickly.”
Aaron Phelan
Founder, Benchmark
“Agnotic combines deep technical expertise with strong domain knowledge. They understand the business context, anticipate challenges, and make collaboration smooth and effective.”
John Pasmore
Founder, Latimer
“Agnotic is the best technical team we evaluated. Their engineering excellence made our work dramatically easier and allowed us to stay focused on what matters most for maternal care outcomes. They took full ownership of the technical execution, and we are always happy to continue working together.”
Kim Smith
Founder, My Lauren
Related pages
Related lending and payments services
This page covers the BNPL product. These pages cover the lending and payment work around it.
Loan servicing software
Payment application, statements and payoff.
Credit risk scoring software
Models and data behind each credit decision.
Payment gateway integration
Gateway and card processing integration.
PCI DSS engineering
Cardholder data scope and the controls around it.
Fintech app development
Consumer finance apps, including lending app screens and disclosures.
More in Financial Services
More Financial Services Solutions
Explore other production-grade engineering platforms we deliver across financial services.
Cross-Industry Reach
The Same Engineering Patterns, Across Other Industries
The technical patterns behind this platform translate naturally into adjacent verticals.
Frequently Asked Questions
The Regulation Z creditor test covers credit with a finance charge or payable in more than four installments, so a fee-free pay-in-four plan often falls outside it. The CFPB's 2024 interpretation was later withdrawn, so your counsel confirms the current position for each plan before we build the disclosures.
The refund posts against the plan's remaining balance and the remaining installments are recalculated, so the customer pays only for what they kept. If the refund exceeds what is left, the difference goes back to the customer's payment method.
We build the decision service that runs your model and policy at checkout and stores the reasons for each decline. Model design and risk-based pricing are covered on our credit risk scoring software page.
Cards are tokenized by the payment processor, and the plan, decision and ledger services store only tokens. That keeps full card numbers in the processor and token vault, which narrows the systems in PCI DSS scope.
The number of plan types, the checkout options you need, how many merchants and platforms you integrate, whether you issue virtual cards, the systems to connect for servicing and settlement, and the notices and furnishing in scope. We size these with you before any estimate.
Some fintechs run BNPL with a bank or licensed lender as the creditor, which changes who holds the plans and who sends each notice. Your counsel decides the structure; we build the records so it is clear which party is the creditor on every plan.
We build the furnishing files and the accuracy checks behind them, such as holding disputed plans and matching refunds before a record is sent. Your team decides whether and when to furnish, and owns the written policies the rules require.
Industries