$2 PARTY, page-1361

In the interest of competition you have to have a level playing field. At present the high cost of using BNPL is worn by the merchants, so they are forced to belt their prices up, which contributes to inflation, just so that BNPL businesses can graft? I reckon merchants will welcome it because they don't want higher fees added to their base cost of goods and the BNPL businesses have got them over a barrel - you want to sell goods son, you have to use us and we'll charge you for it. The cost of BNPL is 4% on average, debit and credit cards are 0.5 - 1.5%

This stuff has come and gone for years - interest free furniture, low interest rates for cars, and the term used is subvention agreements - whereby the wholesaler or retailer makes recompense to the financier for the loss suffered in not charging retail interest rates. BNPL is only a variation, but the big difference is that the basis of the industry was that the BNPL financier would bring the customer to the merchant, so the merchant has to pay. There will be a battle to keep that going until the time that BNPL is entrenched. At this stage take up is very low.