TransUnion to accept BNPL data

Commenting on the news, TransUnion’s chief executive in the UK Satrajit Saha, said: “We’re delighted to announce these important changes to the way BNPL products are treated within the credit ecosystem. 

“We’ve been working closely with prominent providers of BNPL finance to lead the way in line with industry changes and consumer needs. Incorporating this data into credit reports will support consumers that are using this type of point-of-sale finance, whilst also ensuring lenders have a comprehensive picture of a borrower’s financial position.”

TransUnion UK’s chief product officer Shail Deep, added: “By conducting extensive industry analysis and working with leading global BNPL providers to simulate the impact of BNPL data within our credit bureau, TransUnion has been able to identity the most appropriate way to incorporate the data into our products, in what is an evolutionary milestone for the industry, putting the consumer at the heart of these new developments.

“These changes will be really beneficial for those with thin credit files, supporting financial inclusion and wider access to credit, as well as helping to ensure finance providers have a holistic view of an individual’s borrowing, so they can use these insights to help ensure the right outcomes for consumers.”

With a phased implementation, TransUnion will utilise BNPL data within a range of its products, which are widely used by banks and credit providers across the UK. This data will start to appear on consumer credit reports from the summer of 2022.