Paysend launches two new products to help users build credit scores

Paysend says it is improving its customers’ financial health with two new products: Credit Builder and Pay Later.

UK-based fintech Paysend has launched two new products to help its customers boost their financial health.

The company is bringing Credit Builder and Pay Later to its 6.5 million customers in an effort to improve its customers credit.

With Credit Builder, customers can automatically improve their credit score when they use their Paysend card linked to their Credit Builder account.

Paysend then updates major UK credit reference agencies Experian, Equifax and TransUnion, on all payments that go through the Credit Builder account.

According to the company, this should be especially helpful for those with little to no credit history. 

“Many of our customers have low or no credit score and limited access to financial products that can help them build a credit footprint and strengthen their financial circumstances,” Paysend head of product, Ben Chisell, said.

“We are addressing this gap and helping our customers to positively contribute to their credit score with transactions made through Paysend’s platform.”

Chisell explained that some customers might need a “financial buffer”, and that the new ‘buy now, pay later’ type product provides a convenient way to pay directly through a Paysend account while providing more flexibility and control. 

“With Paysend, customers will be able to access additional funds for any purchase and enhance their credit footprint while also being protected from other credit products that may worsen their financial situation,” he said.

Pay Later gives users who are eligible based on the company’s own credit scoring system £100 online or in store with their Paysend card, anywhere that Mastercard is accepted.

Customers will not be charged interest on this money or need to carry out an external credit check that could potentially harm their credit score.

In another effort to help customers improve their financial health, if Pay Later users make their payments on time every two weeks, they can also improve their credit scores.