February 16, 2023 โ BNPL programs are still relatively small in terms of their share of total purchase volume, but they have grown dramatically over the last three years. Although this growth is impressive, it is also a little frightening from a financial crimes and regulatory risk perspective. This warrants increased attention by risk and compliance leaders.
This report provides an overview of the BNPL market and its participants, and explores the different fraud threat vectors as well as AML and regulatory challenges affecting BNPL programs. It is supported by desk research of publicly available information and reports along with interviews with fraud prevention experts from leading organizations.
Clients of Aite-Novarica Group’s Fraud & AML service can download this report.
This report mentions Affirm, Afterpay, Barclays, Chase, HSBC, Klarna, and NatWest.
About the Author
Jim Mortensen
Jim Mortensen is a Strategic Advisor in Datos Insightsโs Fraud & AML practice, covering identity, fraud, and data security issues. Jim has been in the financial services industry for over 30 years, delivering fraud prevention, identity verification, and credit underwriting solutions to top-tier financial institutions both domestically and internationally. Through his experience in the industry, he has developed a substantial...
Other Authors
Chuck Subrt
Charles (Chuck) Subrt is the Director of Datos Insights'ย Fraud & AMLย practice, and heย covers anti-money laundering and complianceย issues. Chuck bringsย 20 years of legal andย compliance experience and a deep expertise advising business leaders, drivingย change, and establishing strong, self-sustaining AML and financialย crimeย compliance and risk management programs at a global financial services company.ย For the past 10 years, Chuck led multiple compliance functions for Sun...
Gabrielle Inhofe
Gabrielle Inhofe is a Senior Associate with Datos Insightsโs Fraud & AML team. Her primary interests include cryptocurrency, artificial intelligence, and EU policy. Prior to joining Datos Insights, Gabrielle worked in Strategy and Global Regulations at cybersecurity company OneSpan, where she wrote the 2022 Global Financial Regulations Report. Gabrielle has a Masters in Advanced European and International Studies from the...