Any thoughts on the CBA bnpl product?, page-238

RBA will also look at the bigger picture...credit card interest rate is being controlled because of the arrival of the BNPL....Banks had ripped off credit card customers since ages and now they do not have the guts to do that anymore. Would you ever imagine CBA which charges even the dead would ever allow low limit credit card for free.

Even credit card seems to have different pricing for different industries and BNPL need not serve the low margin business or even if they serve can charge lesser. Cross subsidisation between products is normal business.

For those business which do not onboard will be losing business because online purchase has become very easy with the BNPL. Further, promotions which is a very important strategy in driving sales which is being done through BNPL apps in one place reduces promotional costs for the business massively...this is a very big attraction for the merchants.

Look at the Asian shops just five years ago which didn’t accept credit cards but now all of them have....if you don’t have a popular payment option for the customers your sales goes down.

For customers there is no cost if they are disciplined but if they can’t manage no one can help. Even banks charge penalties if you don’t pay in time, it is just a normal event.

I have been an investor in this sector for the last 18 months but I got my first app just two months ago because I realised that this is not just for millennials...you will also change your opinion on the necessity of BNPL, it’s just a matter of time...lol