Building Cleo's BNPL Platform for SMBs in Chile

Founded in 2016, Cleo became the first Buy Now, Pay Later (BNPL) provider in Latin America. Since then, it has grown into a leading digital payment company and open banking innovator. Operating across Chile, Mexico, and Peru, Cleo has introduced forward-thinking financial solutions that challenge traditional card-based transactions.

Cleo enables fast, secure, and bank-independent payments directly from a customer's bank account. The service doesn't require registration, and no sensitive personal data is stored. Consumers can complete purchases directly through their bank, while merchants receive funds effortlessly. Behind this simplicity lies an advanced infrastructure with the highest encryption standards and full compliance with modern banking security protocols.

In 2020, as Cleo began to expand its presence in Chile and strengthen its market position, the company sought a reliable technology partner. The goal was to create an advanced checkout system to support installment payments while ensuring speed, scalability, and security. Cleo needed a platform allowing merchants to receive next-day payments while the company managed customer repayments over time — removing risk from the seller's side entirely.

Cleo needed a team that could move fast, build smart, and maintain long-term flexibility. UKAD was selected to bring this exact vision to life. Our proven track record in fintech development, strong industry references, and hands-on expertise with scalable backend architectures made us the right fit. 

The system aimed to deliver an integrated checkout solution for small businesses that let customers spread their payments among multiple installments but allowed merchants to collect funds first.

The main obstacle in the development process was creating a system for real-time credit validation. The payment process needed to provide immediate installment approval to customers through an easy-to-use system that operated securely under paperless procedures. Cleo sought to develop an API-compatible solution operating independently from other platforms through integration with e-commerce systems.

Safe cash flow operations for merchants represented another critical focus. Cleo required assurance of next-day business payment processing and handling installment payments extending from two to three months. Ensuring security standards and regulatory compliance became imperative because the solution needed to gain the trust of consumers as well as merchants.

UKAD brought together a team of experts to deliver Cleo's new checkout system. The dedicated team included a project manager, two backend developers, a frontend developer, a QA engineer, and a DevOps specialist. Each role was selected to ensure the solution met Cleo's core demands: scalability, fast performance, high availability, and seamless integration with third-party platforms.

The system enables merchants to generate a unique QR code at checkout, which customers scan to enter their details and receive instant installment approval securely. This flow reduces friction, speeds up the transaction process, and ensures that customers complete purchases with minimal delays or confusion.

NestJS was chosen as the backend framework for its modular structure and maintainability. It allowed the development team to build a clean, scalable architecture for high-volume financial transactions. Paired with pg-promise, PostgreSQL handled data operations, delivering consistent and high-speed access to customer and payment records.

The frontend was developed with React and Material UI. This combination ensured fast load times, a responsive interface, and a unified design system. Material UI's component library allowed rapid development while maintaining a professional and consistent UX across all screens and devices.

One of the system's most technically demanding features was real-time credit validation. Customers needed immediate feedback on their eligibility for installment payments. UKAD solved this by integrating fast, optimized database queries with a highly responsive backend, ensuring credit checks were processed within seconds, even under high load.

An API-first approach underpinned the platform's architecture. This allowed Cleo to integrate the solution into multiple e-commerce systems without relying on any specific external platform. The architecture was designed to enable easy onboarding of new merchants and regions with minimal configuration or engineering effort.

Security was treated as a priority from the outset. The system followed strict compliance protocols and implemented strong encryption standards to protect every transaction. At the same time, the user experience remained simple and intuitive — particularly important for small business owners who need reliable tools that don't require technical knowledge to operate.

Overall, the solution delivered a reliable and efficient checkout process that supports Cleo's financial model while offering a user-friendly experience for both customers and merchants.

By partnering with UKAD, Cleo successfully launched a powerful BNPL solution tailored to small businesses in Chile. The system allowed retailers to attract additional customers through installment payments, boosting their sales performance and customer loyalty. Since businesses received full payments the next day, they no longer faced cash flow issues, allowing them to focus on growth.

Real-time credit validation transformed checkout operations by reducing user friction, resulting in higher successful purchase completion rates. Customers can make seamless and hassle-free purchases by scanning a QR code to enter their details before instantly getting approval.

Cleo experienced substantial market growth because various businesses at different scales adopted its platform. Due to its simple integration process, small e-commerce stores could add installment payments to their products, thereby reaching customers beyond their initial reach. 

Beyond the technical achievements, Cleo's platform fostered trust and customer loyalty. Secure and reliable transactions reassured merchants and consumers, encouraging repeat purchases and long-term engagement. The project's success not only solidified Cleo's position as a leader in payment flexibility but also demonstrated the impact of technology in driving financial inclusivity in Latin America.

At UKAD, we combine deep technical expertise with a clear understanding of the challenges of fintech companies. Our experience building high-performance platforms makes us a trusted partner for innovative businesses like Cleo. We focus on delivering reliable solutions and helping our clients grow, adapt, and lead in their industries. With a collaborative mindset, proven engineering talent, and commitment to long-term success, UKAD stands ready to support your following ambitious product — from concept to launch and beyond.