In 2023, fintechs need to prioritise providing merchants with sophisticated fraud detection and prevention capabilities to effectively secure the growing marketplace economy. The architecture of marketplaces creates a two-sided fraud risk for any given transaction. This can damage a marketplace’s reputation on both sides of the equation, making buyers less trusting and driving away top sellers.

Operators need compliant and scalable tools that assist in the quick detection and prevention of fraud. In 2021, merchants spent nearly €7bn in 2021 on fraud prevention, which is more than three times the value lost to fraud in that year.

This is evidence that current practices are unsustainable. As margins are squeezed and the economy remains turbulent, fraud and its wider impacts are another pressure to mitigate against next year. Merchants will require support from fintechs to create shopping environments that are compliant with all relevant regulation and align with the needs of today’s consumer.