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Fast approval fertile for stolen and synthetic identities: BNPL’s fraud problem
In 2022, BNPL is poised to grow by 66.5% to reach $82 billion in transaction volume annually. In addition, as more people use BNPL, adoption is growing steadily with a CAGR of 32.5% between 2022-2028.
In the shadows, however, adoption by fraudsters is also surging.
BNPL fraud rate grew by 66% YoY between 2020 and 2021. Bad actors are defrauding BNPL payment systems to steal items ranging from fast food to video game consoles, according to experts.
There is risk involved in every type of payment method, and it is only through iteration that emerging models find their fit for the market. There’s a learning curve as retailers and providers learn how to protect against risk, and consumers learn how to use the new method wisely — and that curve can have some teething pain as we all get used to it.
Introducing Tearsheet's inaugural Bankchain Conference
Cryptocurrency and blockchain are making their way into the mainstream from the early adopters crowd. It’s starting with the basics: mainly with cryptocurrency trading and Bitcoin-based spending rewards. Traditional institutions inhabit a spectrum of blockchain adoption -- some have launched products, and others are still planning to, but they’re all talking about it. It’s happening and it’s likely to have a transformative impact on financial services.
Join Tearsheet's inaugural Bankchain Conference as we explore the strategies different FIs are employing when it comes to tackling crypto: from trading to stablecoins to custody. Hear from the leading blockchain firms working with FIs – like Coinbase, Paxos, Ripple, Zero Hash, and more.
Join us on May 24 - 25 to learn what it takes for FIs and fintechs to partner together to launch new products.
The latest briefing
Banking Briefing: Major Russian banks excluded from SWIFT
As Russia wages war on Ukraine, the US, Canada, and EU allies are cutting off major Russian banks from interbank messaging system SWIFT.
SWIFT currently functions as the interbank messaging system among over 11,000 banks in more than 2,000 countries.
The move means Russia will be cut off from a significant portion of the global financial system. The major banks in the country won’t be able to communicate easily with financial institutions in other countries.
The Russian government was already experimenting with blockchain-based solutions as an alternative to the SWIFT payment system in 2021, according to deputy foreign minister Alexander Pankin.
Read more (exclusive to Outlier members)
Just look at the charts
- Web 1.0, Web 2.0 and Web 3 explained

Source: Alvin Foo
2. The dynamics around a move to T+1 settlement in all major markets

Source: Firebrand Research
Today's stories
TD’s largest takeover ever
TD Bank agreed to buy First Horizon Corp. for $13.4 billion, putting its massive capital stockpile to use for its largest deal ever and expanding its presence in the U.S. Southeast (Bloomberg)
Zip and Sezzle join forces
BNPL player Zip (formerly known as Quadpay) is acquiring Sezzle in a deal that values Sezzle at $355 million (Finovate)
Wise, Remitly suspend money transfer businesses in Russia
Cross-border payments company Wise and remittance processor Remitly have suspended their money transfer services in Russia due to the sanctions there and the ongoing military action in Ukraine (PYMNTS)
Klarna's rapid expansion, losses soar
BNPL giant Klarna has reported soaring operating losses of $748 million for the full year 2021, driven by expansion to fresh markets and the challenges of underwriting a massive inflow of new customers (Finextra)
Visa teams with Tribal on the growth of SMB offerings
Visa, the world's largest payment processor, will partner with payment and financing firm Tribal to expand its offerings for SMBs in Latin America and the Caribbean (Reuters)
Betterment moves into student loan repayment as employment benefit
Betterment launched a new Student Loan Management solution -- it has agreed to acquire the partner and customer relationships of Gradvisor, a platform that provides personalized college savings plans (Crowdfund Insider)
JPMorgan expands its crypto portfolio
One of Wall Street’s largest banks and the first bank to publicly embrace the metaverse, JPMorgan Chase, is investing in blockchain analysis firm TRM Labs (PYMNTS)
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