PayPal opts for Nova Credit to strengthen U.S. credit assessment based on cash flow
In a move that signifies a significant step forward in the evolution of consumer lending, PayPal has announced a partnership with Nova Credit, a leading credit infrastructure and analytics company.
The partnership, according to Misha Esipov, CEO and Co-founder of Nova Credit, is a testament to shared values and a common goal - to power a more fair and inclusive financial system. Michelle Gill, EVP, GM SMB and Financial Services at PayPal, echoed this sentiment, expressing pride in partnering with Nova Credit.
The collaboration is designed to bridge the gap for consumers who are financially capable but lack sufficient credit history. This is particularly relevant in the growing Buy Now, Pay Later market, where traditional underwriting methods have been leaving behind qualified consumers, as noted by Ratinder Bedi, SVP and Global Chief Credit Officer at PayPal.
Nova Credit's flagship product, Cash Atlas®, has been integrated into the core credit decision process by both PayPal and Affirm, announced in February 2023. Cash Atlas® enables lenders to access, analyze, and act on cash flow data in a FCRA-compliant manner.
This integration positions PayPal to capture a larger share of the Buy Now, Pay Later market, thanks to its enhanced underwriting capabilities. By pairing Cash Atlas® with PayPal's comprehensive underwriting processes, consumers can benefit from improved credit eligibility and enhanced customer experiences.
The partnership aligns with PayPal's commitment to responsible innovation and serving consumers through products that meet their evolving financial needs. It also reflects the broader evolution of consumer lending toward more comprehensive financial assessments.
Integrating Cash Atlas® into PayPal's core credit decisioning further strengthens PayPal's differentiated underwriting approach, thanks to Nova Credit's proven track record in alternative credit data. This integration allows PayPal to responsibly incorporate cash flow data and expand credit access without compromising its commitment to consumer financial health, as stated by Ratinder Bedi.
The partnership aims to provide greater access to credit, particularly within the Buy Now, Pay Later space. By doing so, it aims to expand credit access for millions of Americans underserved by traditional financial systems.
Customers can expect more personalized experiences while maintaining the rigorous risk management standards that have made PayPal a trusted platform. This partnership is a significant step towards a more inclusive and fair financial system, and it underscores PayPal's commitment to serving its customers through innovative solutions that meet their evolving needs.
