Talking about regulatory concerns surrounding the rise of ‘Buy Now, Pay Later’ on CNBC-TV18 India, Amit Goel, Prove’s Country Head - India, says, “...we have seen that most FinTech sectors grow in the beginning because of some sort of regulatory arbitrage, and this is a classic example of that. The consumer debt trap might increase because a lot of BNPL players may not have the checks and balances to see which customers have other BNPL loans or are continuously overleveraging using loans from other FinTech companies and BNPL companies. (...) The consumer debt trap can build up, and this is not good overall.”
“I think there’s also a problem of synthetic identity we’ve seen in other countries where some companies are using PIL data and creating synthetic identities. Some hackers are also doing this to take BNPL loans. I have not seen it that much in India, but as the sector grows, there might be issues like that,” Amit adds.
Watch the full video here.
To learn more about how ‘Buy Now, Pay Later’ services can harness Phone-Centric Identity, click here for our primer.
To learn about Prove’s identity solutions and how to accelerate revenue while mitigating fraud, schedule a demo today.
Join over 1,000 businesses that rely on Prove across multiple industries, including banking, FinTech, healthcare, insurance, and e-commerce. Contact us today.
Contact us to learn how leading companies are using Prove Pre-Fill to modernize the account creation process by shaving off clicks and keystrokes that kill conversion.
Get in touch to find out how we can help you identify your customers at every stage of their journey and offer them seamless and secure experiences.
Let our expert team guide you through our identity verification and authentication solutions. Select a date and time that works for you.
Find out how we can help you deliver seamless and secure customer experiences that comply with PSD2/SCA. Select a date and time that works for you.