Affirm and Competitors Now Report BNPL Data to Credit Bureaus
San Francisco, Tuesday, 25 March 2025.
Affirm and other BNPL firms begin sharing consumer data with credit bureaus, merging digital transactions with credit evaluations, a move that could modify credit assessments.
Strategic Shift in Consumer Credit Reporting
In a significant development for the financial services industry, Affirm has announced it will begin reporting all Buy Now, Pay Later (BNPL) transactions to Experian starting April 1, 2025 [1]. This move comes as the company experiences substantial growth, with active consumers increasing by 23% year-over-year to 21 million users, and Gross Merchandise Volume surpassing $10 billion in the quarter ending December 2024 [2].
Industry-Wide Transformation
The landscape of credit reporting is undergoing a notable transformation, with multiple BNPL providers already reporting data to TransUnion [1]. While some companies like Sezzle offer users the option to report their transactions, others like Klarna have maintained distance from U.S. credit bureaus, citing concerns about proper data processing models as of May 2024 [1]. This shift in reporting strategy coincides with FICO’s February 2025 announcement to incorporate BNPL data into credit scoring analysis [3].
Impact on Consumer Credit Profiles
Financial experts warn that the integration of BNPL data into credit reports could have significant implications for consumers. TransUnion’s senior vice president, Liz Pagel, notes that multiple BNPL loans could signal potential cash flow management issues [1]. However, according to Ted Rossman, senior industry analyst at Bankrate, this development could particularly benefit consumers with limited credit history or lower credit scores [1].
Strategic Partnership Enhancement
Concurrent with these developments, Affirm has strengthened its market position through a deepened multi-year agreement with J.P. Morgan Payments as of March 24, 2025 [2]. The partnership aims to enhance payment solutions for U.S. merchants, with data showing that merchants using Affirm experience a 70% increase in average cart sizes and nearly 30% reduction in abandoned carts [2]. This collaboration leverages J.P. Morgan Payments’ extensive network, which processes nearly $10 trillion in payments daily across 160 countries [2].