Buy now, pay later (BNPL) financing reached record heights in 2021. A September study by Accenture revealed some 45 million BNPL users in the U.S. alone, representing more than 300% year-over-year growth since 2018, according to the Pew Trusts. Ecommerce merchants are proving all-in on partnering with BNPL platforms to offer short-term financing to those clamoring for it – and clearly many are.
But, as with any new financial product, caution is prudent. BNPL schemes are no doubt proving lucrative for fraudsters as a new payment fraud avenue. As BNPL attracts regulatory scrutiny, these platforms are at a crossroads. Could a well-devised risk strategy, equipped with the appropriate analytic guardrails, help secure the future of this payment modality?
