The rise of buy-now, pay-later services has been met with criticism — most notably that they could encourage consumers to spend outside of their means. But the retail payment option provides some clear advantages for shoppers, compared to traditional credit cards.
“BNPL is a better and more sustainable way for consumers to use credit when they need it,” explained Klarna UK’s Alex Marsh. “BNPL enables consumers to spread the cost of a purchase with no interest and, in the case of Klarna, no fees. This means that consumers only ever owe the original cost of the product.”
Businesses that offer buy-now, pay-later services need to make accurate identity trust decisions about every interaction — or risk losing funds to fraud.
Retailers say they are seeing a sharp increase in a return fraud wherein consumers claim they never received their online orders.
The practice, known as “item not received” fraud, took off during the pandemic as warehouses were backed up and carriers were overwhelmed by a surge in e-commerce orders. Tactics like these are a form of friendly fraud, which can be hard to detect.
To help businesses alleviate the effects of friendly fraud and isolate why and how it occurs, Kount offers dispute and chargeback management, a single dashboard where businesses can detect and prevent chargebacks from friendly and criminal fraud.
The collaboration will allow businesses to use emerging payment technologies to turn smartphones into cash registers, turn wearables into payment devices, and facilitate touchless retail.
Unfortunately, mobile, CNP contactless payments are as susceptible to fraud as ever, so businesses will want to protect them. One of the best ways to prevent mobile payments fraud is to implement an AI-driven fraud prevention solution.
The fraud landscape is changing constantly. The next attack won’t look exactly like the last one, nor will it target the same kind of victim.
Visa uses artificial intelligence to analyze all transactions across its network and track large-scale transactional changes as part of its fraud detection efforts. This is similar to how Kount uses AI in fraud prevention.