Buy Now, Pay Later Fraud: The Breakdown

Buy Now, Pay Later (BNPL) has revolutionized the fintech landscape. BNPL enables customers to make payments for items in installments over time to the BNPL provider. Businesses get the complete payment from the BNPL provider as soon as the purchase is made. The introduction of BNPL has enabled more people to make high-value purchases, boosting sales for e-commerce merchants. 

The global transaction value of buy now, pay later payments in e-commerce has increased five-fold in the last 3 years and is projected to reach a whopping 300 billion USD in 2023. But as BNPL continues to explode in popularity, what are the risks to BNPL providers and users?