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Buy Now Pay Later (BNPL): Prevent fraud using AML and KYC checks
Buy now and pay later (BNPL) services are the latest trend in the market, which is catching up with consumers and retailers quickly. Unfortunately, even the perpetrators are increasing in this system which have a potential to cause harm to a raising solution in finance. This blogs discusses how BNPL fraud can be prevented using Digital Verification Solutions like Identity Verification, AML screening, Digital Onboarding and Document Verification.
What is BNPL? Why has it become the most preferred consumer buying mode?
The BNPL service providers, the merchant, and the end consumers, mainly these three parties, are involved. And even the Bank directly offers this service to the customer or gives a loan to the BNPL provider. At the time of the transaction, a BNPL service provider instantly gives the amount purchased by the buyer to the retailer or merchant. Subsequently, the payment contract starts between the consumers and the BNPL service provider.