Experian has just announced a new credit bureau that is aimed at the buy now, pay later crowd.
The bureau will be cleverly known as The Buy Now Pay Later Bureau™.
Experian has spotted an opportunity to roll out this new service with a large number of people using Buy Now, Pay Later (BNPL) services.
In fact, 45 million Americans used BNPL products in 2021, and spending on BNPL has increased 230 percent since the start of 2020.
It appears a critical part of the data the BNPL bureau will accumulate will be based on information provided by BNPL suppliers. Greg Wright, executive vice president, and chief product officer for Experian Consumer Information Services. “We are committed to giving BNPL providers the confidence they can report information to us without negatively impacting consumer credit scores. We are confident we have found a solution with The Buy Now Pay Later Bureau that will help protect consumer credit scores while bringing more transparency to the industry.”
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. 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.
You can find more information here about The Buy Now Pay Later Bureau™.