Buy Now, Hunger for Information on People Who Will Pay Later will increase Experian credit rating agency’s revenue
- “Good progress” in new customer segments in the UK, such as buying now, paying later
- Experienced clients want to know if loan applicants are genuine or fraudulent
- In the last quarter of 2021, group earnings at constant exchange rates rose 11 percent
Buy Now, data on people using later payment services is benefiting Experian, which has increased its revenue after a strong third-quarter performance.
The UK-listed company, which creates credit reports and scores based on consumer borrowing and payment habits, said the UK is now “making good progress” in new customer segments such as buying and paying later.
Experian’s clients – among banks, other companies and government agencies such as HSBC and Barclays in the UK – are demanding his services to find out whether the applicant is genuine or fraudulent.
Experian is now benefiting from the growing popularity of buying, then paying for services
“The interesting thing about buying now is that more people want to know what it means for a consumer’s total debt or how to deal with consumer debt,” Nadia Ridout-Jamieson, chief communications officer at Experian, told Acesparks.
Against the backdrop of rising fees and food prices, BNPL services are becoming more popular, with many consumers using Clarna, Clearpay and others to distribute or pay their bills later.
The latest data from TSB shows that more Britons are turning to BNPL services than ever before, with the number of customer transactions with Clarna increasing by 59 per cent in the 12 months from 1 December 2020.
Experian reported that earnings on fixed exchange rates rose 11 percent in the last three months of 2021.
On the eve of Christmas, when more people usually apply for credit cards to pay for additional expenses, the increase in demand for credit reports has helped.
Experian has a long history – its beginnings began in 1803 when London seamstresses began sharing customer details that were slow to pay off their debts.
Experienced shares have risen about 15% over the past year
The U.S., which has the strongest demand for its services for companies and consumers, is the largest market with nearly 70 percent of its total revenue, where sales grew 13 percent.
In the UK and Ireland, which accounted for 13 per cent of all revenues, organic trade grew by 8 per cent in constant currency.
The strong demand for data analysis and the strong adoption of its artificial intelligence-based platform have also helped boost sales in the UK.
Experian now expects annual revenue to grow from 16% to 17%, up from 15% to 17% from the previous forecast.
However, the company cut its organic earnings forecast for the year due to weakness in European, Middle Eastern and African markets.
Shares of the company are down 1.7 per cent today to £ 31, although they are up 15 per cent from a year earlier.