At an event with BNPL stakeholders, ACCIS announced today the release of a report addressing the critical intersection of Buy Now, Pay Later (BNPL) services and European credit referencing practices. Titled “Protecting and empowering consumers of BNPL products: Best Practices from a Credit Referencing Perspective,” this report offers insights into the evolving landscape of BNPL products and their interaction with credit referencing agencies (CRAs), aimed at ensuring robust consumer protection and empowerment.

The report delves into the definition and characteristics of BNPL products, highlighting their growing popularity in Europe, particularly within the e-commerce sector. With the European BNPL market projected to reach staggering figures, it is imperative to establish effective mechanisms to safeguard consumer interests. The report emphasises the pivotal role of CRAs in this BNPL landscape, advocating for collaboration between BNPL providers and CRAs to ensure accurate reporting, data privacy compliance, and adherence to industry standards. By incorporating BNPL data into credit reports and scores, CRAs can offer a more comprehensive assessment of consumers’ financial behaviours, thus facilitating informed lending decisions.

To facilitate this collaborative effort, the report outlines a set of best practices for BNPL providers and CRAs, encompassing aspects such as access to credit databases, comprehensive data reporting, and regulatory compliance.

In conclusion, the report underscores the shared responsibility of BNPL providers and CRAs in fostering a secure and sustainable financial ecosystem for consumers. By adhering to these best practices and regulatory frameworks, stakeholders can contribute to enhancing consumer protection, promoting financial inclusion, and ensuring the integrity of the credit referencing process.