Experian’s first office Buy Now, Pay Later will protect consumer credit scores and provide real-time insights to drive more inclusive and responsible lending

Experian’s Buy Now Pay Later Bureau™ will provide lenders with real-time reports, scores and attributes

COSTA MESA, California, January 27, 2022–(BUSINESS WIRE)–In an effort to protect the financial health of consumers, Experian® today announced its plan to bring more transparency to the growing buy now, pay later (BNPL) industry. In Spring 2022, Experian will launch The Buy Now Pay Later Bureau™, a first-of-its-kind specialist bureau that will provide visibility so lenders can contribute to greater financial inclusion and better assess risk while preventing negative impact on consumer credit scores.

Many consumers appreciate the ease of access, flexibility and choice that BNPL loans provide. In fact, 45 million Americans used BNPL products in 2021 and spending on BNPL has increased 230% since the start of 2020.1.

Although Experian has worked with some of the largest BNPL providers since 2016, the majority of BNPL accounts are not reported to credit bureaus because the most commonly used scoring models today are designed to predict risk based on payment behaviors of traditional credit products, not BNPL accounts.

“Our mission is to drive financial inclusion while ensuring responsible lending and we believe BNPL payment reporting plays a critical role in achieving this,” said Greg Wright, executive vice president and chief product officer for Experian Consumer. Information Service. “At the same time, we are committed to giving BNPL’s suppliers the confidence that they can provide information to us without negatively impacting consumer credit scores. We are confident that we have found a solution with The Buy Now Pay Later Bureau which will help protect consumers’ credit scores while bringing more transparency to the industry.”

The Buy Now Pay Later Bureau will allow BNPL providers to provide data on all types of point-of-sale products, enabling a comprehensive view of consumer payments, including the number of BNPL loans in progress, total loan amounts BNPL and BNPL payment status. To protect consumers’ credit scores from immediate negative impact, detailed information relating to each BNPL transaction will be stored separately from Experian’s central credit bureau data.

Bringing more transparency to the financial services sector

Justified concerns about the negative impact on consumer credit ratings have prevented many BNPL providers from releasing information. In turn, this has prevented traditional lenders from having a complete view of consumers’ financial obligations.

Experian’s one-of-a-kind specialist desk will provide real-time consumer BNPL activity reporting as well as Fair Credit Reporting Act (FCRA) regulated scores and attributes for BNPL providers and traditional lenders to use to make instant and accurate credit decisions. . By gaining a more comprehensive view of consumers’ BNPL repayment behaviors, lenders can provide low profile or subprime consumers who would otherwise be denied credit with a first or second chance.

To learn more about The Buy Now Pay Later Bureau, visit www.experian.com/bnpl.

About Experian

Experian is the world leader in information services. During life’s big moments – from buying a house or car, to sending a kid to college, to growing a business by connecting with new customers – we enable consumers and our customers to manage their data with confidence. We help individuals take financial control and access financial services, businesses make smarter decisions and thrive, lenders lend more responsibly, and organizations prevent identity theft and crime. .

We have 20,000 people operating in 44 countries, and every day we invest in new technologies, talented people and innovation to help all of our customers maximize every opportunity. We are listed on the London Stock Exchange (EXPN) and are part of the FTSE 100 index.

Learn more about www.experianplc.com or visit our global content hub on our world news blog for the latest news and insights from the Group.

Experian and the Experian trademarks used herein are trademarks or registered trademarks of Experian and its affiliates. Other product and company names mentioned herein are the property of their respective owners.

1 https://afterpay-corporate.yourcreative.com.au/wp-content/uploads/2021/10/Economic-Impact-of-BNPL-in-the-US-vF.pdf

See the source version on businesswire.com: https://www.businesswire.com/news/home/20220127005299/en/


Amanda Garofalo
Experian Public Relations
1 714 460 3739
[email protected]

About Matthew Berkey

Check Also

China’s real estate woes deepen in August as prices, sales and investment tumble

By Liangping Gao and Ryan Woo BEIJING (Reuters) – China’s housing market woes deepened in …