Equifax (NYSE:EFX) will make "Buy Now, Pay Later" payment information part of consumer credit reports, as identified by a new business industry code, the company says.
Note that BNPL products are a growing way for consumers to access alternative financing options for online or in-store purchases. They typically involve short-term, interest-free installment payment options.
Starting in the beginning of 2022, Equifax (EFX) will implement a new business industry code for BNPL, which is used to classify BNPL tradelines, including payment history and give customers the ability to review how to analyze the information.
"Equifax will be the first credit reporting agency to formalize a standard process for reporting BNPL tradelines on traditional consumer credit reports," said Mark Luber, chief product officer for U.S. information solutions at Equifax.
Still, shares of EFX slide 3.2% in pre-market trading.