Why is BNPL so popular? Consumers don’t have to pay interest, and some providers don’t even charge late fees for missed payments. The risk checkpoints that have historically acted as barriers for the credit unserved or underserved no longer exist. And without the data and risk technology in place to fill in those gaps, delinquency can and will happen, especially given the economic context fueling BNPL usage  – cost of living crises is impacting developed and emerging markets, inflation is high and delinquencies across consumer lending are the highest they’ve been in a decade.

Financial IT tapped Kathy Stares, Executive Vice President, North America at Provenir, to share her guidance on what BNPL providers can do to mitigate risk and maximize process/cost efficiency in these highly volatile times.