FICO’s recent announcement of a BNPL specific credit score, initially using data from Affirm, marks a noteworthy shift in how traditional credit systems are beginning to recognise alternative lending behaviours.  

The move is a signal that BNPL is maturing, transitioning from a niche payment option to a recognised form of consumer credit. But as much as the announcement marks progress, it also reveals how far the credit system still has to go.

BNPL has exploded, with nearly 2.7 million applications processed daily in the US alone, compared to fewer than 500,000 daily for credit cards. Globally, the market is projected to reach USD 744.1 billion by 2028.

It’s popular for good reason. BNPL offers simplicity, transparency, and flexibility, especially for Gen Z and millennials, many of whom either choose not to, or don’t have access, to traditional forms of credit. 

Rather than revolving balances and interest charges, BNPL offers fixed, zero interest loans repaid in flexible terms. That however, makes BNPL structurally different from traditional lending and a poor fit for legacy credit infrastructure.

FICO’s new BNPL specific score is a welcome recognition that this form of credit is here to stay. However, it currently draws data only from Affirm, a provider with a customer base which skews toward prime borrowers. For others with more subprime users it could cause real harm. 

The legacy credit system isn’t built for short term, flexible products like BNPL.

More importantly, the new score sits alongside, not within, the main credit file. And it still relies on the outdated Metro 2 format, which isn’t built for the fast, flexible nature of BNPL. As a result, traditional scores like FICO 8 or 9 still penalise consumers for normal BNPL usage, treating multiple transactions as credit inquiries and missing repayments that shift due to product returns or flexible terms.

One provider reporting to one bureau doesn’t solve the fundamental problem: there’s still no system-wide visibility into BNPL usage. Consumers often use multiple BNPL providers, sometimes within the same day, and lenders have no way to see that activity in real time. That opens the door to loan stacking, repayment risk, and consumer harm.

What’s needed isn’t just more data. It requires real time, structured, and aggregated data across the ecosystem. Only then can lenders make informed, fair decisions and only then should BNPL activity be considered for integration into core credit scoring models.

Qlarifi is purpose built for BNPL. It aggregates real time repayment data across providers, offering visibility into patterns, behaviours, and risks that traditional systems miss. Unlike legacy scores, our architecture is designed for high frequency, short term loans. It doesn’t penalise consumers for using BNPL responsibly, it highlights good behaviour and identifies true risk.

FICO’s announcement shows that legacy institutions are beginning to take BNPL seriously and that’s important. It legitimises the sector, and lays the groundwork for deeper financial integration. But it also exposes the inadequacy of current systems.

BNPL isn’t just a niche payment method anymore. It’s used by over 100 million consumers in the US alone. Without real time, cross provider infrastructure, traditional reporting will continue to miss essential information and exclude millions.

Qlarifi is uniquely positioned to address these gaps. With modern infrastructure and a collaborative approach, it can build the next layer of the credit ecosystem, one designed for how people borrow now, not how they borrowed 30 years ago.