Introduction
Choosing an appropriate Pricing Model for your Fintech App is one of the most Important Steps in ensuring your project’s success. If you’re planning on creating a Fintech App, Digital Wallet, Mobile Banking TE – Gateway, or other similar project and you’re currently in the pricing model selection phase, know that your Pricing Model will have a direct impact on your delivery speed, flexibility,y and long-term return on investment (ROI).
At Appricotsoft, we have worked with Start-Ups, SMEs, and Corporations across both the US and the EU, so we have seen both Successful and Failed Projects due to Bad Commercial Models and Incompatibilities with the Original Product Requirements. Therefore, we have the experience to help you make your project successful!
This guide will outline:
- Pricing Models, including:
- Fixed pricing
- Time and Material (T&M)
- Dedicated Team
- Under what circumstances does one model fit over another
- Controlling the Project Scope
- Avoiding Unexpected Budget Costs
This is a Practical Comparison of Pricing Models for Fintech Apps.
Why Pricing Models Are More Important Than Ever in Fintech
Fintech projects tend not to be simple.
Going through the process of developing a PSD2-compliant fintech project (much like the following):
- KYC AML (Know Your Customer Anti-Money Laundering) Implementation
- Fraud Detection
- Open Banking Implementation
- Payment Gateway Implementation Services
- Managing Sensitive Financial Data
- Navigating Regulatory Standards
Unlike a simple MVP (Minimum Viable Product) landing page – that would remain the same throughout its lifetime – the fintech system will unlikely stay in stasis while the development team is evolving it. As compliance rules change, so too will risk modeling; security auditing may reveal things designed in error, and third-party integrations may exhibit unforeseen behavior.
Thus, the relevance of the pricing model must align with the unknown factors that exist in the marketplace.
If not, then you will either get charged an exorbitant fee and/or underfund your complexity.
1. Fixed Price Model
You make an agreement to complete projects with fixed timelines, fixed scope, and fixed budget. The fintech software development company commits to delivering defined functionality at a fixed price.
Seems like a safe option, doesn’t it?
Sometimes it is safe.
When Fixed Price Works for Fintech
Fixed price works best when:
- The requirements are clearly defined.
- All integrations are stable and well-known.
- The compliance requirement is understood in full.
- The architecture has been validated.
- There are no major discovery items to be determined.
Some examples would be: Refactoring an existing defined feature, adding a PSD2 compliant authentication layer to an already built system, or implementing a pre-defined payment gateway integration and thus redesigning the UI without changing the back end.
If you are engaged in creating a predictable scope for your FinTech app development, then a fixed price agreement will allow you to place constraints on your budget.
The Hidden Risks of the Fixed Price
The founders often underestimate the potential:
- That their early assumptions become expensive contractual restrictions.
- That thechange requeste will come in bigger and bigger numbers.
- The vendor will protect its margins by constantly narrowing their interpretation.
If the scope is not accurately validated at the start of the project, there will be:
- Change Orders
- Delays
- Friction
This can be particularly problematic in fintech projects where the regulatory clarification could easily be determined after construction starts.
The Project Management Institute reports that poor requirements definition accounts for some of the highest levels of project failure.
How to Control Scope When Doing a Fixed Price Agreement
If you decide on a fixed price agreement, make sure that you:
- Run a structured discovery phase first
- Define acceptance criteria per feature
- Lock integrations and third-party dependencies
- Separate compliance risk from feature scope
- Document assumptions clearly
At Appricotsoft, our Unison Framework starts with an Align & Plan phase before any commitment.
We clarify risks, dependencies, and unknowns before numbers are finalized.
Fixed price should be earned – not guessed.
2. Time and Material (T&M)
The way you pay for T&M projects is by considering:
- Time Expended
- Resources Used
The general scope is flexible, so the budget will also adjust to reflect what’s been accomplished.
T&M is often thought of as “uncontrolled.” In fact, properly executed T&M may be the MOST transparent form of project management.
When does T&M work in Fintech?
T&M scenarios are best when:
- Build an MVP
- Have not yet validated your target market.
- The architecture is still in flux.
- Fraud detection logic needs to be revised.
- Compliance consulting will likely modify the product’s features.
- You will be iterating.
Some examples of T&M projects are:
- Digital wallet development
- Mobile banking app development
- Open banking integration
- AI Risk Scoring
Most projects in Fintech don’t remain static.
How to Avoid Budget Surprises with T&M
The biggest concern founders have is: “How do I avoid a budget spiral?”
To avoid budget surprise issues with T&M, do the following:
- Use short cycles to track progress.
- Weekly demos provide visibility into your budget really well and give you a chance to make adjustments early.
Have a clear backlog of work items (user stories) with:
- Acceptance criteria
- Effort estimations
- Priorities
Even if you modify the scope of a T&M project, the changes should always be documented as scope changes and agreed upon.
Track your burn rate each month by:
- Monthly burn rate
- Forecasting the end date based on the existing pace
- By identifying risk factors
The project team uses the backlog as its single source of truth.
3. What is a Dedicated Team Model?
A dedicated team model for FinTech software development is when you employ a team of engineers, developers, and product managers who are exclusively focused on developing your product.
This type of model often includes:
- Back-end engineers.
- Mobile app developers.
- QA engineers.
- DevOps engineers.
- Product managers.
You will pay a monthly rate per team member.
When Does a Dedicated Team Model Work Best?
Dedicated teams work best when:
- There is a long-term roadmap for your product.
- There is an investment in continuous releases.
- There is a need for deep domain expertise.
- You want to take ownership of the product.
- You are scaling your business.
Dedicated teams are ideal for:
- Growing FinTech platforms.
- Expanding mobile banking ecosystems.
- Expanding compliance to multiple markets.
- Ongoing integration of payment gateways.
- Continuous improvement of fraud detection models.
A dedicated team model can often be the most strategic option when building a long-lasting, meaningful partnership with your FinTech app development company.
What is the Difference Between a Dedicated Team and In-House Resources?
As a founder, you may be asking yourself, “Why not just hire in-house?”
Great question!
When you hire an employee, you have to spend time:
- Recruiting.
- Paying payroll taxes.
- Maintaining compliance.
- Carrying long-term employment risk.
- Purchasing management tools (e.g., inventories of equipment and software).
A dedicated team of FinTech development professionals offers you:
- Immediate ramp-up / on-boarding within your organization.
- Domain experience/expertise within your industry.
- Mature processes that are proven to work.
- Flexibility to grow or shrink in your business (e.g., scale).
If structured appropriately, it provides you with the feeling of being in-house without the overhead.
Comparing the Three Models
| Criteria | Fixed Price | T&M | Dedicated Team |
|---|---|---|---|
| Scope Flexibility | Low | High | High |
| Budget Predictability | High (initially) | Medium (controlled) | High (monthly predictable) |
| Best For | Well-defined features | MVP & evolving products | Long-term scaling |
| Change Handling | Formal change requests | Backlog reprioritization | Strategic planning |
| Risk Level | High if scope unclear | Moderate | Lowest for growing products |
Vendor Selection Selecting the Best Model
Ask Yourself:
- Have I fully validated my scope?
- Are there any likely changes and/or developments in compliance rules?
- Do I need more iterations of my product?
- Am I looking for or building for the long term?
- Do I want to control the future of the project’s development?
Select the Following Models Based on the answers to the above:
- If you continue to be validating a product-market fit → T&M
- If you are creating a defined module within the existing framework → Fixed Pricing
- If you are scaling a Fintech Ecosystem → Full-Time Dedicated Team
Preventing Budget Surprises: The Real Key
Budget surprises often happen due to whatever pricing model you are using:
- Requirements that are not clearly defined
- Technical debt that has not been made known
- Communication is not done well
- Lack of scope control
- No risk log
- AI-generated code that hasn’t been reviewed properly
As we have seen in the trend toward using AI-built MVPs, there are now many services (such as AI code review or code audit for AIAI-generatedpplications) that can help you manage these issues.
If you are making AIan prprototypento a production version, you need to use structure.
(The VibeCoded Project Audit shows you how to safely turn AI-generated systems into a production version if this applies to you.)
Appricotsoft on Fintech Pricing
Our vision guides our approach to developing software that we are proud of! Our vision results in:
- A lack of hidden scope creep
- No extra hours worked
- No micromanagement
- A sense of total ownership
The Implementation of the Unison framework enables us to do the following:
- AI drives execution
- Humans own the outcome
- Transparency created via weekly demos and risk logging is easy to identify
- Explicit Tradeoffs are always made
When it comes to developing a pricing model that protects both vendors and customers alike, we believe in using models that are tailored specifically for you. We will not suggest a model that does not fit within your current reality.
Final Remarks
Pricing models vary, and there are no models that are regarded as having a recognised cost per unit.
However, the following will apply to pricing models in the future:
- Model that suits Product Lifecycle
- Model that agrees with Uncertainty Levels
- Model that produces Control with No Friction
When considering a FinTech Software Development Company (FSDC, the pricing model will be attractive, but should not be the only factor in your decision when selecting an FSDC.
In addition to these items,s whenselectingn a FSDC measure:
- Process Maturity
- Scope Control
- Risk Transparency
- Compliance Familiarity
- Scale Ability
Pricing Models are not Financial Decisions but are Strategic Decisions.
If you have any plans to develop a FinTech App, develop a Digital Walleintegrateate a Payment Gateway, or scale an Existing FinTech App, please contact us as we can assist with aligning your pricing model in ways that preserve your budget and your product development roadmap.