$2 PARTY, page-1434

I completely disagree with the notion that the surcharge will kill BNPL.

Firstly, there is no guarantee the surcharge element will be legislated.

Secondly, even if legislation enables businesses to pass on the surcharge, most businesses don't pass on surcharges because it makes your business look tacky - most build it into the price of the product.

Thirdly, businesses didn't have to sign up to BNPL in the first place - they chose to do this despite knowing of the high fees involved. The reason for this (as shown by numerous studies) is that it makes your business more appealing, increases sales, increases conversion rates at checkouts etc. In other words, it brings you sales you wouldn't otherwise have been making.

Fourthly, even if some businesses do decide to pass on the BNPL surcharge, those companies might elect to only pass on part of the surcharge instead (e.g. pass on 2% and absorb the rest), because they don't want to alienate their BNPL customers and they know they still receive significant value out of accepting BNPL payments. I've seen some businesses that don't accept AMEX payments or charge a higher surcharge for AMEX credit cards (e.g. 3.5%), but AMEX still does extremely well.