Alex Naughton’s Post

FICO’s new BNPL credit score is a step toward recognising that BNPL isn’t just a fringe payments trend, it’s a core part of modern consumer credit used by millions. But let’s be clear, one provider reporting to one bureau doesn’t fix the systemic issue. What’s really needed is real time, industry wide visibility. Most BNPL users rely on multiple providers, often on the same day. So without the infrastructure that provides real time insights, lenders are flying blind and consumers are being penalised by outdated systems. More importantly, the new score sits alongside, not within, the main credit file. And it still relies on the outdated Metro 2 format, which isn’t built for the fast, flexible nature of BNPL. As a result, traditional scores like FICO 8 or 9 still penalise consumers for normal BNPL usage, treating multiple transactions as credit inquiries and missing repayments that shift due to product returns or flexible terms. Qlarifi was built to solve this. We’ve created a solution that was purpose built for BNPL. It creates transparency via real time data, across multiple providers. Plus, we’re already rolling out in Europe and ready to scale. BNPL deserves modern infrastructure that provides the transparency and real time insights it needs. It’s used by over 100 million consumers in the US alone, and they deserve fair credit decisions based on the full picture, not a broken snapshot. For more thoughts, read the Qlarifi blog here: https://lnkd.in/dKFdqbCD