A survey by FinTech Pave has found a majority of BNPL customers are worried about its impact on their credit score as the payment method has begun to show on credit reports.
Pave surveyed over 1000 people in January this year to understand the financial concerns of the public as the UK slowly recovers from the pandemic.
The study found that 60% of customers were worried about BNPL’s impact on their credit scores, while 78% of respondents who were 18-44 who have used BNPL services don’t fully understand the impact of BNPL on their credit file.
Over the course of the pandemic, the use of BNPL has shot up – with 48% of BNPL users in the 18-44 age group reporting a climb in their usage.
Pave CEO and co-founder Sho Sugihara said, “Credit scores directly affect people’s ability to access finance and customers are becoming more aware and knowledgeable about this. As BNPL services become more common, it’s important for the customer to have complete clarity on its impact on their credit score. A large proportion of customers we surveyed were unaware that BNPL would impact their credit file at all. This is why we need increased transparency from BNPL firms”.
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