Equifax®, a global leader in data, analytics, and technology, has teamed up with Qlarifi, the first real-time consumer credit database specifically designed for Buy Now, Pay Later (BNPL) lending, to conduct a groundbreaking joint study. The focus of the study is to evaluate how the inclusion of Buy Now, Pay Later data affects credit risk assessments and fraud prevention efforts. This collaboration aims to bring much-needed insight into the growing BNPL market, where over half of U.S. consumers currently utilize BNPL services, and a significant portion—35%—plans to increase their usage in the coming years.

As BNPL usage continues to rise, both Equifax and Qlarifi recognize the urgent need to study the predictive capabilities of real-time Buy Now, Pay Later data. The joint research will mark the first U.S.-based industry-wide study that incorporates live BNPL data from multiple providers, assessing its impact on credit evaluations and its potential to detect and prevent fraud. By offering this in-depth analysis, the two companies aim to provide lenders and financial service providers with valuable data to optimize decision-making processes.

Qlarifi’s platform is uniquely designed to handle short-term credit, giving lenders a secure and efficient means of tracking BNPL transactions across providers in real-time. This technology enables lenders to access detailed, up-to-the-second insights into consumer borrowing behaviors, helping to detect issues like loan stacking and offering transparency into BNPL usage patterns.

Jake Osborne, Senior Vice President and General Manager of Fintech and Payments at Equifax, emphasized that the collaboration with Qlarifi and multiple BNPL providers will ultimately help the industry identify strategies to reduce loan stacking risks and improve the predictive capabilities of Buy Now, Pay Later data, all while benefiting consumers.

Understanding how this data influences loan decisions has become crucial for lenders as more consumers use BNPL services. Traditional credit reports remain a cornerstone for evaluating financial reliability, but the study will also explore how BNPL data can offer additional insights, identify early signs of financial strain, and protect consumers from overextending themselves. By incorporating Buy Now, Pay Later data into credit decisioning, the study could also enhance access to credit for individuals with limited or no traditional credit history. According to Alex Naughton, CEO of Qlarifi, this study will be an important step in providing a more thorough and transparent picture of BNPL behavior, assisting consumers and lenders in making more informed choices.