Overview

• Klarna and Afterpay confirmed on August 7 that they will not provide U.S. BNPL loan data to credit bureaus without proof it benefits customers’ credit standings.
• FICO is set to launch BNPL-inclusive credit score models this fall that it projects could raise scores for borrowers who repay installments on time.
• A year-long joint study with Affirm found that aggregating BNPL loans in scoring algorithms has increased some consumers’ credit ratings.
• CFPB research shows that consumers under 25 carry 28% of their debt through BNPL services, intensifying concerns about borrower risk and transparency.
• Buy Now, Pay Later usage has expanded into electronics, groceries, home goods and travel, driving calls for clear reporting standards and consumer safeguards.