The February 2023 Aite-Novarica Group report examines the growth of buy now, pay later (BNPL) programs, highlighting their appeal as alternatives to credit cards due to flexibility, ease of use, and broad availability. However, BNPL faces significant risks, including identity theft, synthetic identity fraud, account takeovers, and unique fraud vectors intensified by real-time origination and purchase. Providers must address AML risks by monitoring for red flags and adapting quickly. Regulatory gaps create uncertainty, but jurisdictions are moving toward clearer rules and stronger consumer protections, which will increase compliance demands on BNPL providers.

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