The NYT has been closely covering the BNPL industry’s booming growth, publishing several in-depth articles over the past few years. This latest article looks at the intractable problem that Qlarifi was created to resolve: BNPL data aggregation and reporting.

The article notes that while there have been several industry announcements regarding the incorporation of BNPL data into the reporting and scoring systems of large credit bureaus, the approach has been disjointed and in general, the BNPL industry has major concerns with the risks and lack of technical progress in reporting. As the article sets out, although BNPL lenders broadly agree on the merits of reporting in theory.

“…they worry that reporting the loans would end up hurting their customers. Existing scoring models penalize borrowers who take out many loans in a short period. That could be a problem for the pay-later industry because, unlike credit card purchases, each pay-later transaction is treated as a loan.”

These concerns are echoed by consumer advocates such as the National Consumer Law Centre. The system that currently exists, which was designed for traditional forms of lending, is simply not fit for purpose when it comes to BNPL data.

Qlarifi’s CEO is cited in the article:

Alex Naughton, who left Klarna last year to help found Qlarifi and is now its chief executive, portrays the company as a nimble, more tech-savvy credit-reporting approach. It will be able to collect and share data in real time rather than monthly, the standard for the major credit bureaus.

“I don’t think the existing infrastructure is able to adapt as quickly,” he said.

Qlarifi seeks to offer an industry-led solution that leverages cutting edge data streaming technologies at scale, as well as implementing data privacy best practices. Qlarifi's real time BNPL credit data aggregation unlocks profitable growth across BNPL and better outcomes for consumers.

The full article is available here: 'Pay Later' Lenders Have an Issue With Credit Bureaus