Experian is launching The Buy Now Pay Later Bureau this spring, which the Irish credit data company calls a “first-of-its kind” operation designed to protect consumer credit scores from and drive more inclusive and responsible lending.
The announcement, published Wednesday (Jan. 26) on the Experian blog, comes less than two weeks after the Irish credit data company said it had seen a rise in demand for buy now, pay later (BNPL) services.
“The Buy Now Pay Later Bureau will allow BNPL providers to furnish data on all types of point-of-sale products — enabling a comprehensive view of consumer payments, including the number of outstanding BNPL loans, total BNPL loan amounts and BNPL payment status,” Experian said. “To protect consumer credit scores from immediate negative impact, detailed information related to each BNPL transaction will be stored separately from Experian’s core credit bureau data.”
Experian said the bureau lets lenders access the insights they need to carry out “responsible and inclusive lending,” while still guarding consumer credit scores. It will also help consumers access financial services that are fair and affordable.
“By gaining a more complete view of consumer’s BNPL repayment behaviors, lenders can provide thin-file or subprime consumers who would otherwise be denied credit with first or second chances,” the company said.
Read more: Experian Sees Growing Demand From Clients for BNPL Products
As BNPL has become more and more mainstream, Experian says it has seen a rise in clients demanding the company’s credit data services to determine if an applicant is fraudulent or not.
Experian Chief Communication Officer Nadia Ridout-Jamieson said earlier this month that the interesting thing about BNPL is “that more people want to know what it means for the total indebtedness of the consumer, or how is the consumer handling debts.”
BNPL companies have been reporting higher amounts of demand as COVID-19 restrictions have been relaxed and flexible lending and low interest rates have helped to strengthen lending and marketing activities.
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