UBS says regulation is coming, page-27

What BNPL does is deliver more customers, which helps improve profitability. The marginal cost curve is actually improved even with the 4% taken.

Really? Unless BNPL creates money out of thin air it can't deliver more customers long term. It is really just a short term sugar hit for people with poor credit.

Once BNPL uptake is high the comparative advantage to a business is gone. The fees just become another burden which must be absorbed.

Have you ever wondered why restaurant's continue to offer UberEats when they take 30% of their Revenue? It's all about the marginal cost curve.

Most restaurant owners aren't good at running a business (60% fail min 12 months and 80% in three years). I doubt many are doing any proper financial analysis before signing up to food delivery services.

“There’s a concern that it could be a system where restaurant owners are trapped in an unstable, unsuitable business model that not only doesn’t add to their bottom line but could eat away at their profits and their ability to keep their doors open,” said council member Mark Gjonaj at the hearing, as reported by Nation’s Restaurant News.

https://www.*.com.au/are-food-delivery-apps-killing-restaurant-jobs-2019-8?r=US&IR=T