Buy Now, Pay Later scheme revenue to reach $1.92 B
Account ownership among Filipinos stood at 56 percent at end-2021 and effiorts are underway to increase this to 70 percent by the end of this year.
Daily TribuneAccount ownership among Filipinos stood at 56 percent at end-2021 and effiorts are underway to increase this to 70 percent by the end of this year.
Jan Sysmans, Mobile App Security Evangelist at Appdome, said that through Appdome's advanced mobile malware protection, buy now, pay later app providers can safeguard their users' data from cyber threats, enhancing trust and fostering loyalty. | photograph courtesy of Appdome
Revenues from online shopping applications offering the "buy now, pay later" scheme are forecasted to reach $1.92 billion by the end of the year because of the good financial landscape in the Philippines, software developer Appdome said.
In fact, according to the Bangko Sentral ng Pilipinas, account ownership among Filipinos stood at 56 percent at end-2021.
According to Jan Sysmans, Mobile App Security Evangelist at Appdome, though efforts are underway to increase this to 70 percent by the end of this year, a significant portion of the population remains underbanked or unbanked.
However, this success can only be made possible by developers keeping their apps secure from all manner of threats plaguing the mobile landscape.
Customer protection prioritized
"In response to the changing threat landscape, Buy Now Pay Later app providers must prioritize customer protection. They can do this by automating protections and embedding defense into the developmental lifecycle," he said.
BNPL apps offer mobile shoppers a financial installment service that allows them to delay paying the full price. Micro-credit loans are used to acquire items at a reduced cost, including vacation trips, electronics, and exercise equipment. The remaining amount will then be settled at an agreed-upon date.
Currently, the Philippines boasts numerous BNPL apps for users to choose from. These include TendoPay, LazPayLater, Grab PayLater, UnaPay, BillEase, Cashalo, Plentina, Atome and GCredit.
Threats
Sysmans said BNPL apps' rising popularity can be attributed to their easy application and credit acquisition processes.
However, he said these features have also attracted opportunistic cybercriminals looking to prey on new victims and drain their funds for their own nefarious purposes.
Without proper security, users will lose faith in BNPL apps and turn to other competing services that can prioritize their safety.
Sysmans said there are five tactics for which BNPL app makers need to be prepared, namely weaponizing BNPL apps for synthetic fraud, overlay and keylogging tactics, data and application programming interface breaches, trojan apps, and hacking and fraudster research.
"Hackers understand that one doesn't simply attack their targets head-on. They first need to be familiar with the app's environment and features. The best way to do that is by interacting with the primary workflows, such as purchases. Developers can stay on top of this tactic by obfuscating their app's coding and utilizing solutions that can block the use of Dynamic Binary Instrumentation toolkits like Frida," he said.
Security
With more customers adopting BNPL apps to pay for their goods, the need to prioritize security becomes greater than ever.
"This is why app makers need to embrace a shift-left mindset that pushes the integration of protection features at the earliest stages of development. And with the mobile security solutions mentioned above, they can continue to build trustworthy experiences, leading to greater user loyalty," he said.
"Appdome empowers app developers with tools and capabilities to seamlessly integrate robust mobile cyber defense measures into their apps without disrupting the development cycle or compromising user experiences. Through Appdome's advanced mobile malware protection, BNPL app providers can safeguard their users' data from cyber threats, enhancing trust and fostering loyalty," he added.
