Buy Now, Pay Later (BNPL) Fraud Prevention Market Report 2025

The buy now, pay later (bnpl) fraud prevention market size has grown exponentially in recent years. It will grow from $3.99 billion in 2024 to $4.95 billion in 2025 at a compound annual growth rate (CAGR) of 24.1%. The growth in the historic period can be attributed to demand for digital identity solutions, growth in ransomware attacks, proliferation of mobile devises, demand for buy now, pay later services, and high security standards.

The buy now, pay later (bnpl) fraud prevention market size is expected to see exponential growth in the next few years. It will grow to $11.82 billion in 2029 at a compound annual growth rate (CAGR) of 24.3%. The growth in the forecast period can be attributed to rising number of cross border transactions, increasing target based cyber attacks, increasing synthetic identity, growing threats, increasing contactless payments. Major trends in the forecast period include identifying potential threats, government initiatives for cloud adoption, multi cloud deployments, blockchain technologies, hybrid cloud deployments.

The forecast of 24.3% growth over the next five years reflects a slight reduction of 0.1% from the previous projection. This reduction is primarily due to the impact of tariffs between the US and other countries. This is likely to directly affect the US through higher fraud losses, as machine learning-based identity verification tools and transaction monitoring platforms, predominantly sourced from Estonia and Finland, become more expensive to license at scale. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

The rapid rise in digital payments is expected to significantly boost the growth of the buy now, pay later (BNPL) fraud prevention market in the coming years. Digital payments refer to financial transactions conducted electronically, using mobile wallets, credit/debit cards, online banking, and contactless methods, without physical cash. The increasing use of digital payments is primarily driven by the widespread adoption of smartphones and improved internet connectivity, which make transactions more accessible and convenient at any time and place. BNPL fraud prevention solutions are essential in this space, as they help detect and stop unauthorized or fraudulent activities, safeguarding both merchants and consumers from potential financial losses and reputational harm. For instance, in March 2025, Visa Inc., a US-based payments technology company, reported that its Tap to Phone service in the UK experienced a 320% growth in 2025, outpacing the global adoption increase of 200% over the past year. Consequently, the rise in digital payments is fueling the expansion of the BNPL fraud prevention market.

Leading players in the BNPL fraud prevention market are investing in advanced technological solutions, particularly those powered by machine learning, to enhance real-time detection and prevention of fraud. These machine learning-based systems are designed to analyze behavioral patterns and identify suspicious transactions dynamically, allowing for continuous adaptation to evolving fraud tactics. For example, in February 2022, Outseer, a US-based fraud prevention company, introduced Outseer Emerging Payments, a machine learning-integrated fraud prevention tool. This solution is tailored to meet the growing demand for installment-based payments and offers continuous authentication throughout the digital payments process. By securing every stage - from user enrollment to transaction management - Outseer effectively mitigates a broad range of fraud risks beyond traditional card-not-present (CNP) scenarios, delivering robust, end-to-end protection for BNPL users.

In December 2024, Scalapay S.r.l., an Italy-based fintech firm specializing in BNPL services, partnered with Trustfull to enhance its fraud prevention measures across Europe. This collaboration leverages Trustfull’s Identity Intelligence platform to ensure secure transactions and minimize fraud-related risks for both merchants and consumers. Through advanced identity verification and digital footprint analysis, the partnership bolsters Scalapay’s security infrastructure, enabling more reliable and trustworthy BNPL services. Trustfull, also based in Italy, specializes in digital footprint analysis to support identity validation and fraud detection in digital transactions.

Major players in the buy now, pay later (bnpl) fraud prevention market are Amazon.com Inc., ICICI Bank Limited, RELX Inc., NICE Ltd., Fair Isaac Corporation, Pine Labs Private Limited, PayU Payments Private Limited, PayU Finance India Private Limited, One97 Communications Limited, Checkout Ltd., Trulioo Information Services Inc., Seon Technologies Ltd., Kount Inc., Quick Heal Technologies Limited, DataVisor Inc., Ekata Inc., Fintech, FingerprintJS Inc., Axio, Veriff OÜ, Epaylater, Afterpay Limited.

North America was the largest region in the buy now, pay later (BNPL) fraud prevention market in 2024. The regions covered in buy now, pay later (BNPL) fraud prevention report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the buy now, pay later (BNPL) fraud prevention market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The buy now, pay later (BNPL) fraud prevention market consists of revenues earned by entities by providing services such as biometric authentication, chargeback and refund protection, collaborative fraud intelligence, and behavioral analytics. The market value includes the value of related goods sold by the service provider or included within the service offering. The buy now, pay later (BNPL) fraud prevention market also consists of sales of identity verification solutions, transaction monitoring systems, credit risk assessment tools and synthetic identity detection tools. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sharp rise in U.S. tariffs and the ensuing trade tensions in spring 2025 are having a considerable impact on the financial sector, particularly in the areas of investment strategies and risk management. The increased tariffs have intensified market volatility, leading institutional investors to adopt more cautious approaches and driving greater demand for hedging solutions. Banks and asset managers are encountering higher costs in cross-border transactions as disrupted global supply chains and declining corporate earnings weigh on equity market performance. At the same time, insurance providers are facing elevated claims risks linked to supply chain interruptions and trade-related business losses. Furthermore, reduced consumer spending and weaker export demand are limiting credit growth and dampening investment appetite. In response to these challenges, the sector must focus on diversification, accelerate digital transformation, and strengthen scenario planning to manage the heightened economic uncertainty and safeguard profitability.

Buy now, pay later (BNPL) fraud prevention refers to the strategies and measures implemented to safeguard BNPL transactions from fraudulent activities. The objective is to stop fraudsters from exploiting the BNPL model which enables consumers to pay in installments while maintaining secure access for legitimate users.

The primary offerings in BNPL fraud prevention include solutions and consulting services. Solutions encompass products, tools, or strategies designed to effectively and efficiently address specific fraud-related challenges across various industries. These solutions can be deployed either in the cloud or on-premises and are used to combat threats such as new account abuse, synthetic identity fraud, account takeovers, fraudulent chargebacks, transaction laundering, and more.

The buy now, pay later (BNPL) fraud prevention market research report is one of a series of new reports that provides buy now, pay later (BNPL) fraud prevention market statistics, including buy now, pay later (BNPL) fraud prevention industry global market size, regional shares, competitors with a buy now, pay later (BNPL) fraud prevention market share, detailed buy now, pay later (BNPL) fraud prevention market segments, market trends and opportunities, and any further data you may need to thrive in the buy now, pay later (BNPL) fraud prevention industry. This buy now, pay later (BNPL) fraud prevention market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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