Buy Now, Pay Later (BNPL) in the U.S. accounted for about $18 billion of eCommerce transactions in 2020 and is projected to grow from 1.6% of eCommerce transactions to 4.5% by 2024. As more consumers choose BNPL, many questions have surfaced. Can consumers become overextended? How do BNPL trades impact consumer credit scores if they pay on-time payments or become delinquent? What impact are we seeing on existing portfolios?

As previously announced, Equifax will soon be accepting BNPL trades, and a new industry code has been created for this purpose. In partnership with FICO®, we have completed a thorough analysis of the impact that incorporating these trades can have on credit scores based on a data sample of actual trades provided by a popular BNPL provider. 

This deck shares the results of this analysis with FICO in addition to our usual economic update.