Tymit, a pioneer of instalment credit cards, and leading credit reference agency Equifax have announced a new Open Banking partnership to support affordability decisions and transparency for Tymit’s credit products in the UK.

This partnership, leveraging the power of Equifax’s Open Banking solutions, allows Tymit to improve the accuracy of affordability decisions with real-time insights and more granular transaction data. This provides direct benefits to Tymit customers, helping those with ‘thin’ credit history to demonstrate their financial resilience and unlock access to finance while simultaneously helping to protect vulnerable consumers from unaffordable debt.

Implementing BNPL best practices

Tymit became the first credit card provider to integrate Buy Now, Pay Later (BNPL) functionality into its offer in 2019, through the launch of its instalments credit card. It was also one of the first BNPL providers to report borrowing data to all three major credit reference agencies in the UK – an action supported by Equifax to help protect consumers from problem debt and improve financial inclusion.

According to Equifax’s BNPL Barometer, nearly half (48%) of UK adults now use BNPL. Furthermore, the average monthly payments have surged by almost half (46%) in the last two years alone. Despite the rising use of BNPL, regulatory uncertainty persists with the UK government's 2021 announcement of impending BNPL regulation yet to translate into concrete action. 

As calls for stricter regulations grow, Equifax and Tymit’s collaboration demonstrates a proactive approach to addressing industry concerns and promoting responsible BNPL practices. The move towards greater credit decision transparency also aligns with the UK's new Consumer Duty framework, which came into force last year and requires financial services providers to actively promote good outcomes for consumers. 

Richard Seal, Business Development Manager at Equifax UK, comments: “Increasing trust and transparency in the BNPL market is vital as the sector comes under increasing scrutiny. Tymit’s commitment to improving the transparency of its affordability decisions exemplifies best practice in the BNPL industry and sets a precedent for other providers. The leveraging of the power of Open Banking will also benefit both consumers and lenders, enabling a more accurate assessment of consumers’ ability to meet credit repayments, increasing financial inclusion, and supporting the prevention of problem debt.”

Bis Das, VP of Risk at Tymit, comments: “We’re committed to providing our customers with the control they need over their spending. That’s why we’re excited to partner with Equifax to empower consumers and drive responsible BNPL growth in the UK. By combining our innovative instalment credit card offering with Equifax’s Open Banking solution, we can help people achieve their financial goals and build a healthier credit history.”

ENDS