Tuesday, 02 January 2024 12:17 GMT

Buy Now, Pay Later (BNPL) Fraud Prevention Market Report 2025 Machine Learning Drives Innovation In Real-Time Fraud Prevention For BNPL Transactions


(MENAFN- GlobeNewsWire - Nasdaq) The BNPL fraud prevention market presents growth opportunities driven by rising digital payments, increased cross-border transactions, and the need for secure solutions like biometric authentication and behavioral analytics. Key trends include leveraging machine learning for dynamic fraud detection and adapting to changing global trade relations.

Dublin, Sept. 10, 2025 (GLOBE NEWSWIRE) -- The "Buy Now, Pay Later (BNPL) Fraud Prevention Market Report 2025" has been added to ResearchAndMarkets's offering.
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 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 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.
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 BNPL fraud prevention market are 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 OU, Epaylater, Afterpay Limited.
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.
Key Attributes:

Report Attribute Details
No. of Pages 250
Forecast Period 2025 - 2029
Estimated Market Value (USD) in 2025 $4.95 Billion
Forecasted Market Value (USD) by 2029 $11.82 Billion
Compound Annual Growth Rate 24.3%
Regions Covered Global


Key Topics Covered:
Buy Now, Pay Later (BNPL) Fraud Prevention Market Trends and Strategies
Global BNPL Fraud Prevention Growth Analysis and Strategic Analysis Framework

  • Global BNPL Fraud Prevention PESTEL Analysis
  • Analysis of End Use Industries
  • Global BNPL Fraud Prevention Market Growth Rate Analysis
  • Global BNPL Fraud Prevention Historic Market Size and Growth, 2019-2024
  • Global BNPL Fraud Prevention Forecast Market Size and Growth, 2024-2029, 2034F
  • Global BNPL Fraud Prevention Total Addressable Market (TAM)

BNPL Fraud Prevention Market Segmentation

Global BNPL Fraud Prevention Market, Segmentation by Offering

  • Solutions
  • Services-Consulting Services

Global BNPL Fraud Prevention Market, Segmentation by Deployment Models

  • Cloud-Based Deployment
  • On-Premise Deployment

Global BNPL Fraud Prevention Market, Segmentation by Application

  • New Account Abuse
  • Synthetic Identity Fraud
  • Account Takeovers (ATOs)
  • Fraudulent Chargebacks
  • Transaction Laundering
  • Other Applications

Global BNPL Fraud Prevention Market, Sub-Segmentation of Solutions

  • Identity Verification
  • Transaction Monitoring
  • Behavioral Analytics
  • Device Fingerprinting
  • AI-Based Fraud Detection
  • Risk Scoring Systems

Global BNPL Fraud Prevention Market, Sub-Segmentation of Services - Consulting Services

  • Fraud Risk Assessment
  • Compliance Advisory
  • Implementation and Integration Services
  • Managed Detection and Response
  • Training and Support Services

BNPL Fraud Prevention Market Regional and Country Analysis
BNPL Fraud Prevention Market Competitive Landscape and Company Profiles

  • Inc.
  • ICICI Bank Limited
  • RELX Inc.
  • NICE Ltd.
  • Fair Isaac Corporation

BNPL Fraud Prevention Market Other Major and Innovative Companies

  • 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 OU

Global BNPL Fraud Prevention Market Competitive Benchmarking and Dashboard
Key Mergers and Acquisitions in the BNPL Fraud Prevention Market
Recent Developments in the BNPL Fraud Prevention Market
BNPL Fraud Prevention Market High Potential Countries, Segments and Strategies

  • Countries Offering Most New Opportunities
  • Segments Offering Most New Opportunities
  • Growth Strategies

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  • Buy Now, Pay Later (BNPL) Fraud Prevention Market
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