Klarna will report BNPL data to UK credit reference agencies

The company says its UK customers will soon be able to build a positive credit history by using Klarna’s BNPL products


Klarna will report BNPL data to UK credit reference agencies. Source:

Klarna will begin reporting the BNPL data the UK credit reference agencies to protect customers, provide the industry with greater visibility of BNPL use, and give UK consumers one less reason to use high-cost credit cards.

Klarna’s BNPL products in the UK are interest- and fee-free, and have inbuilt controls to prevent the accumulation of debt, making them a fairer alternative to traditional credit.

It is alarming that UK consumers are still being forced to take out high-cost credit cards to demonstrate they can use credit responsibly and build their credit profile. That will start to change on 1 June this year as the vast majority of the 16 million UK consumers who make Klarna BNPL payments in full and on time will be able to demonstrate their responsible use of credit to other lenders
Alex Marsh, Head of Klarna UK

Klarna will report UK consumer purchases paid on time, late payments and unpaid purchases for Pay in 30 and Pay in 3 orders made on or after 1 June, 2022 to both Experian and TransUnion.

This will give the financial industry greater visibility on UK shoppers’ use of Klarna’s BNPL products, help to improve affordability assessments, and means Klarna consumers who make payments on time can build a positive credit history, showing lenders they use credit responsibly.

Whilst reporting on the use of BNPL products will be reflected in UK consumer credit files from June 2022, they will not initially impact UK consumer credit scores as this requires further updates to the scoring mechanisms used by the CRAs.

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