Buy Now, Pay Later (BNPL) continues to make inroads as a growing option for consumers looking for more flexibility in making online payments. A recent market analysis underscores that growth, predicting the value of global BNPL transactions will grow from $132 billion last year to nearly $3.7 trillion by 2030—an annual growth rate of 45 percent.
The report also found that, while consumers are turning to BNPL to pay for goods and services in a number of verticals including media and entertainment, automotive, home improvement, and others, retail goods accounted for the largest market share. Healthcare and wellness, however, will expand at the fastest rate throughout the forecast period
While BNPL has achieved astonishing popularity in the short time it has been widely available—especially during Covid lockdowns when e-commerce exploded but many people were out of work—fraudsters have used its quick growth as an opportunity.
A recent report from data aggregator and credit bureau Experian predicted that 2022 would see a sharp rise in fraud targeting BNPL transactions, especially identity theft and synthetic identity fraud. Card Not Present also reported last year on a different kind of attack targeting merchants that were early adopters of BNPL.