Klarna , Afterpay and Credit Checks, page-39

they've given a number of reasons

a) their bad debts have been reducing yoy
b) mandatory $4 credit checks for every purchase request will hurt their innovation, which will lead to poor consumer outcomes as bnpl operators are less likely to operate and thrive under relatively restrictive regulatory obligations.
c) open banking will enable bnpl operators greater access to banking transactional data..complementing existing credit scoring models.

given comm banks loss rates on their consumer retail books are increasing, maybe they need to follow the apt playbook