The majority – 60 per cent – of Buy Now, Pay Later (BNPL) customers are concerned about the impact of the payment option on their credit scores, according to research from UK FinTech Pave.
The study, which surveyed over 1,000 people aged 18 to 44 last month, also found that 78 per cent of respondents who have used BNPL don’t fully understand its impact on their credit.
Earlier this month, TransUnion became the first UK credit agency to accept BNPL data.
“Credit scores directly affect people's ability to access finance and customers are becoming more aware and knowledgeable about this,” said Sho Sugihara, co-founder and chief executive, Pave. “As BNPL services become more common, it's important for the customer to have complete clarity on its impact on their credit score.
“A large proportion of customers we surveyed were unaware that BNPL would impact their credit file at all. This is why we need increased transparency from BNPL firms''.
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