3 PAYMENT METHOD SCORECARD: BUY NOW PAY LATER
Governance Metrics
between the private provider and the government. Including more stakeholders in decision-making surrounding BNPL operations may be helpful for the future success of this payment method. Fee Setting There is no centralized fee setting structure. The pricing of BNPL is determined by competition. Central Bank Support There are no well-known examples of central banks supporting BNPL.
Weight Score
Presence of Regulation (Merchant) Presence of Regulation (Consumer) Central Monitoring (Public/ Private) Decision-Making Forums Decision-Making Balance
13% 2.0
13% 3.0
13% 1.0
13% 1.0 25% 4.0 13% 5.0 13% 1.0
Fee Setting
Central Bank Support
TOTAL SCORE
2.6
Regulation Presence (Merchant) In some markets, regulations have been discussed, however, they are focused on the consumer side. In markets where there is no regulation, there can be high rates of credit losses which can be passed on to merchants in the form of higher fees. Regulation Presence (Consumer) Some markets have enforced regulations to protect consumers, usually by including BNPL providers into existing credit regulation. In comparison to credit cards, credit losses are similar. (See the Credit Loss Analysis in the BNPL Profile.) Central Monitoring (Public/Private) BNPL providers are monitored privately, however, there has been an increase in regulatory attention in recent years. Decision-Making Forums There are no well-known decision-making forums for BNPL. Decision-Making Balance In regulated markets, BNPL governance is a mix
200
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