News: Z1P Australia's central bank tells Buy Now Pay Later firms to drop surcharge ban, page-51

There is nothing to suggest that merchants will be forced to surcharge, just that the BNPL providers won’t be allowed to prohibit surcharges. Credit card surcharges were introduced to reduce the subsidisation by customers using cheaper payment methods of customers using the more expensive methods. It meant that customers could then choose whether they wanted to pay more for their preferred method. Allowing merchants to surcharge expensive BNPL enables more choice for customers and merchants. Will merchants attempt to pass on all of the costs? Maybe, but for many that are reliant on BNPL for sales will likely refrain from surcharging for BNPL, others won’t and the market will tell us which was the better choice.