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KYC & AML - The Fundamentals of Providing Secure BNPL Services

The introduction of the Buy Now Pay Later (BNPL) service has taken the entire world by storm, with over 300 million active users worldwide in 2022 alone. BNPL services allow consumers to buy an item and make the complete purchase over several separate instalments – meaning they can receive their purchase immediately and continue to pay it off over time. Researchers have shown that by 2025, the trend of BNPL will continue to skyrocket.

As technology continues to evolve and businesses adopt new frameworks, the rise and success of BNPL services have been shown to be a haven for fraudsters. There are several schemes used by fraudsters to target BNPL services, the two prominent ones being synthetic ID fraud: where fake and real information is combined to create a fake profile, and account takeover: when fraudsters purchase goods using a customer’s personal details. This surge in BNPL fraud is not only causing damage to consumers but also proving detrimental to merchants as it leaves them with tremendous financial repercussions and dampens their merchant reputation.

Globally, BNPL service providers are determined to put an end to the rising threat of fraud and limit the presence of fraudsters. This is where Know Your Customer and Anti Money Laundering (KYC/AML) enter the market and provide hope for financial security. KYC & AML solutions protect financial institutions from heinous crimes and provide firms with up-to-date compliance. Additionally, vigorous KYC services provide exceptional user experience, improving brand image all around.

eBOS offers a variety of solutions to combat potential risks through efficient customer screening integrated with KYC & AML compliance frameworks. WiseBOS Screening provides organisations concerned with KYC and AML mandates with the technology to effectively prevent criminal infiltration into the financial system through effective customer screening, resulting in more accurate data. WiseBOS eCV – electronic Customer Verification, is another solution offered by eBOS, that enables holistic authentication of consumers with real-time ID verification & face validation, making eCV a key element when it comes to Electronic Determination of KYC & AML compliance.