I don't like that approach at all. I think any added charges that will need to be brought about due to rate rises should go straight to the merchant. That way the merchant can up their prices, as expected of them to do anyway, and the customer is left in blissful ignorance thinking they are still getting the same good BNPL deal.
Basically I think the customer should be tricked into thinking only the product has gone up in price. When in fact it's also the payment method but in a more roundabout way.
The customer will almost always want whatever that product is regardless of payment method. However, if they notice their BNPL service is charging more, that'll incentivise them to switch to pay another way.
Daily Price Movement / General Discussion, page-32991
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