Afterpay says no to credit checks, warns of big bank dominance

Afterpay has rejected calls for it to conduct credit checks on new customers and told a Senate Committee on fintech regulation that the coronavirus pandemic is increasing the dominance of the major banks.

The $12.3 billion buy now, pay later heavyweight told the committee in a submission that credit checks were irrelevant to its younger customer base.

“Credit checks are a lagging customer indicator, are unhelpful for younger adults with no credit bureau history, and often provide an incomplete picture of a customer,” the submission to the Senate Select Committee on Financial Technology and Regulatory Technology said.

It added that while it supported the development of a buy now, pay later industry code of practice it was against any proposed extension of national consumer credit protection to buy now, pay later products.

“It remains Afterpay’s view that consumer outcomes should remain the focus rather than the application of a one-size-fits-all regulatory approach.”

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Source: Afterpay says no to credit checks, warns of big bank dominance