TransUnion Set to Acquire Credit Prequalification Firm Monevo

TransUnion says it plans to acquire British credit prequalification/distribution platform Monevo.

The credit reporting agency announced the deal Wednesday (Jan. 8), noting that it already owned 30% of Monevo’s equity after purchasing a minority stake in 2021.

“We are committed to making trust possible in global commerce by ensuring consumers and organizations can transact with confidence,” Todd Skinner, TransUnion president, international, said in a news release.

“Prequalification is an integral part of the consumer lending process. It drives financial inclusion and responsible lending by helping consumers find more suitable products in less time.”

Per the release, Monevo lets comparison websites and other online brands embed “highly personalized credit offers,” chiefly in the British and American markets, working with over 150 banks and credit providers worldwide. The goal is to let lenders and publishers offer better outcomes for consumers searching for credit online.

“Those consumers are able to see the likelihood of being approved for credit products before applying with lenders, saving time and removing unnecessary searches which potentially adversely impact their credit scores,” the release said.

Terms of the deal were not disclosed. The acquisition is expected to be completed by the end of the second quarter of this year.

As PYMNTS wrote last month, embedded lending — the integration of credit offerings into platforms where borrowers can apply for credit directly during a transaction — is gaining traction with both consumers and microbusinesses (MSBs) around the world.

According to the PYMNTS Intelligence report “The Embedded Lending Opportunity: Global State of Play,” consumers and MSBs are embracing embedded lending products, but obstacles remain, especially in the application process.

The report found that 15% of consumers around the world had used embedded lending in the 90 days before being surveyed, led by the U.S. at 17%. Younger people, members of Gen Z especially, were the most likely to use embedded lending, at 19%, showcasing its appeal among consumers new to credit.

But despite its popularity, users of embedded lending still faced friction, especially during the application process, with 37% of consumers and 58% of MSBs pointing to problems such as unclear terms and complex eligibility requirements.

“Additionally, 46% of consumers and 31% of MSBs reported frustration with irrelevant offers, indicating issues with targeted marketing,” the report noted. “To unlock the potential of embedded lending, addressing user experience challenges is critical for increasing satisfaction and engagement.”