Algoan bets on its responsible BNPL solution to conquer the UK

After conquering the French fractional payment market (Oney, Alma, Pledg, etc.), Algoan is now targeting the UK with its Payment Scoring solution: an API-based scoring solution that instantly measures consumers' ability to repay their payment installments. This is a major market for the French fintech, which specializes in API-based Credit Scoring.

The United Kingdom, a priority for responsible BNPL

The BNPL market in the UK, which has propelled some of the biggest BNPL fintechs to unicorn status, is now in turmoil. With a wave of non-payments and a lack of profitability, some fintechs are even leaving the market to focus on other countries.

According to the new regulations announced, fractional payment lenders will have to check that loans are financially affordable for consumers, before granting them. The market will be governed by the Consumer Credit Act 1974, the law already applied to consumer credit.

The urgency is therefore the same for all BNPL players: equip themselves to better manage their cost of risk and anticipate the regulations scheduled for 2023.

Open Banking, the cornerstone of responsible BNPL

Algoan provides BNPL players with a simple solution for accurately assessing a customer's creditworthiness and repayment capacity in real time during online payment, while guaranteeing a smooth customer journey with no need for supporting documents.

In France, the impact of Algoan's solutions is unequivocal.

Algoan's payment score, powered by algorithms for analyzing and enriching Open Banking data (the secure sharing of credit applicants' banking data), enables BNPL players to reduce their risk by up to -50% compared with conventional statistical scoring.

Today, the fintech handles several thousand requests a day relating to purchases via fractional payment. A flourishing success that it intends to duplicate in the UK.

“Open Banking-based credit decisioning is undoubtedly the solution that BNPL players will favor to comply with regulations. Easily integrated into all purchasing paths and based on recent, reliable data, we're confident that our solutions respond to the momentum the market is currently experiencing.” Michael Diguet, CEO at Algoan