BNPL is here to stay. Bank of England figures suggest more than three million households in the UK owe £2.7 billion to BNPL lenders. Over £10 billion has been lent in the past three years. And it’s not just consumers using this payment method – 43% of European businesses have used BNPL to cover a business expense. What is really astonishing is the accuracy of the lending. Default rates are a fraction of credit card lending, despite a similar user base. So, how do they do it?
In this Information Age article, Corinne Lleti, Director General of Southern Europe for Provenir, explains how BNPL providers use data, AI and ML to make more reliable decisions in a fraction of a second.