Global: Socure acquires BNPL credit startup Qlarifi

Global identity platform Socure has acquired buy now, pay later consumer credit database Qlarifi.

Founded by a team of BNPL alumni from Klarna and Zip, Qlarifi launched in March on the back of a £1.4 million pre-Seed round.

Socure says the combination will establish a unified identity, anti-fraud, and BNPL credit infrastructure, helping consumers to build credit responsibly through BNPL repayment and reducing first party fraud losses for lenders and merchants by up to 70 percent.

Globally, BNPL spend is projected to exceed $700Bn by 2028. Despite this rapid adoption, the underlying infrastructure needed to support the industry has lagged, as traditional credit bureaus struggle to ingest high frequency, small dollar lending decision

Qlarifi was designed to give BNPL providers the insight needed to safely expand services for trusted customers while pinpointing high-risk behavior such as loan stacking and first-party fraud.

“We built Qlarifi to solve a very real pain point: the lack of infrastructure to protect consumers from overextending themselves across multiple BNPL providers,” says Alex Naughton, co-founder and CEO of Qlarifi. “By joining forces with Socure, we now have their tremendous commercial scale, balance sheet, and world-class analytics behind us to build the infrastructure that will enable responsible lending at scale and demonstrate to regulators that the industry can protect consumers while expanding access to credit.”

Financial terms of the transaction were not disclosed.