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May 15, 2020

Fraud risks to grow as Covid-19 forces older consumers online

By GlobalData Financial

Fraud risks are set to rise dramatically as isolation measures under Covid-19 bring a wave of vulnerable consumers into online financial channels for the first time.

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What does the future hold for BNPL market?

The global Buy Now Pay Later (BNPL) market is estimated at a massive $120 million in 2021 – representing just less than 3% of the global ecommerce market. Yet the user-base is massive, with leading provider, Klarna, alone reportedly having 87 million users in 2021. This market is only expected to grow, with established companies like Apple and Goldman Sachs moving into the BNPL sector in bids to capitalize on this trend. To help you make the most of this growing market, GlobalData’s Buy Now Pay Later in 2022 and Beyond report provides detailed insight into the BNPL sector. This report:
  • Discusses the disruptive potential of the BNPL sector on the payments industry
  • Identifies the leading companies that are driving sector growth and the benefits this new payments solution provides to both merchants and consumers
  • Analyzes the consumer’s risk of using BNPL loans and government attempts at introducing regulations to the sector
  • Uncovers the main risks that consumers expose themselves to when borrowing with BNPL
Download this free report to get to know where this developing market is headed, and how you can reshape your strategies.
by GlobalData
Enter your details here to receive your free Report.

Covid-19 has brought in an e-commerce boom as previously disengaged consumer segments – especially the elderly – are obliged to transact through digital channels. What was originally expected to be a gradual transition to a more digital way of life has suddenly accelerated greatly, and the industry is not ready for the fraud risks that come with that shift. Given how many older people moved to digital in such an abrupt manner, there is a clear opportunity for fraudsters to target these new ‘silver surfers.’

This trend of the elderly adopting digital alternatives to their routine will only increase. According to a study by Capgemini Research Institute conducted in 11 countries, including China, the US, India, and the UK, 80% of Indian consumers within the 56–60-years age range will use more digital services in the next six months. A similar trend was seen in China, where 75% of the same age group highlighted an increase in digital use in the near future.

This presents a big opportunity for fraudsters, as older people – especially those not used to transacting online – make for easier targets. According to GlobalData’s latest consumer survey data, the elderly experience online card fraud more commonly than younger generations.

This should be more of a concern for payments companies than it already is; Covid-19 may be disrupting businesses, but ignoring this issue will cost companies in the long run. Currently, payments companies are asking the European Central Bank to delay the implementation of the Strong Customer Authentication standard because of how priorities have changed in the current climate. The roll-out of these measures should be stepped up, not put on hold, given the risk posed by the massive influx of new digital payments users.

It will take time for this new wave of ‘silver surfers’ to acclimate to e-commerce and online banking and learn to recognise fraud risks. Until then, payments companies and banks should make an extra effort to make security even stronger, or risk losing a lot of money to fraud claims. 

Free Report
img

What does the future hold for BNPL market?

The global Buy Now Pay Later (BNPL) market is estimated at a massive $120 million in 2021 – representing just less than 3% of the global ecommerce market. Yet the user-base is massive, with leading provider, Klarna, alone reportedly having 87 million users in 2021. This market is only expected to grow, with established companies like Apple and Goldman Sachs moving into the BNPL sector in bids to capitalize on this trend. To help you make the most of this growing market, GlobalData’s Buy Now Pay Later in 2022 and Beyond report provides detailed insight into the BNPL sector. This report:
  • Discusses the disruptive potential of the BNPL sector on the payments industry
  • Identifies the leading companies that are driving sector growth and the benefits this new payments solution provides to both merchants and consumers
  • Analyzes the consumer’s risk of using BNPL loans and government attempts at introducing regulations to the sector
  • Uncovers the main risks that consumers expose themselves to when borrowing with BNPL
Download this free report to get to know where this developing market is headed, and how you can reshape your strategies.
by GlobalData
Enter your details here to receive your free Report.

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