The main reason behind this attention is the disproportionally higher fraud losses, as the True Cost of Fraud research (APAC edition) by LexisNexis Risk Solutions has reported. Moreover, the growth in the BNPL industry has attracted the attention of regulators in many parts of the world, including in Asia. As ApplePay and PayPal are entering BNPL markets, we might be at the tipping point in Asia. The BNPL industry in Asia is still lagging behind the US and Europe, but the region is catching up quickly. Many merchants have taken note by providing payment options that meet customers’ needs that differentiate them from their competition whilst also building loyalty. With that number is expected to grow as traditional banks and credit card issuers lose up to $10 billion in revenue annually to fintech. Globally, BNPL stands as the seventh most popular payment method, with integrated shopping apps, card-linked instalment offerings and off-card financing solutions making up the majority of the BNPL industry.Īn estimated 170 companies are offering BNP. Most customers use BNPL to acquire inexpensive everyday purchases and some bigger purchases such as electronics and appliances.ĭifferent regions have varying levels of adaption and penetration when it comes to BNPL, with Sweden leading the world with 25% of all domestic eCommerce payments facilitated by BNPL. Through the streamlined customer experience, flexible payments, hassle-free credit, close to real-time credit approval, zero per cent or low interest, and fee transparency, more than 59 million people flocked to BNPL as a way to tap short-term financing without interest during a time when many found themselves out of work and facing economic uncertainty. Despite being around for about a century, BNPL became more popular thanks to changes in consumer behaviour. The model works by letting customers take possession of an item and splitting payments over a fixed number of instalments. With the quick rise of online commerce transactions brought about by increased online shopping opportunities during the pandemic, buy now, pay later (BNPL) became one of the most popular payment options available. Understanding the opportunities and fraud risks in BNPL for consumers
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