That is the basis of the BNPL business model - that merchants...

That is the basis of the BNPL business model - that merchants adjust their pricing to allow for unsophisticated shoppers to get their goods on credit which would otherwise not have been available to them. The RBA is committed to changing that and introducing competition. It will disrupt the industry but hopefully ZIP will be taken over

Most Buy Now, Pay Later (BNPL) providers derive the majority of their income from merchants, typically charging fees ranging from 2-8% of each transaction, which is significantly higher than credit card fees

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. Merchant fees account for around 90% of BNPL revenue for many providers

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. However, some providers also generate income from customer late fees, interchange fees, and partnerships with financial institutions

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. While merchant fees dominate, the exact revenue mix can vary depending on the provider's business model