The Retailer Winter Edition 2023

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Partner with Reputable Brands Most merchants wouldn’t be likely to partner with a BNPL brand that prioritizes net totals over customer affordability. Regardless, this point is still worth mentioning. If a company approves absolutely everyone, and promotes large-scale purchaseswithout much equity, that should be seen as a sign of suspicious lending practices. It maybe time to search for amore reputable partnership. Set your own Reminders and Incentives A merchant’s responsibility to their customers doesn’t halt at the BNPL approval stage. Merchants may take the time to offer reminders and incentives for BNPL customers and consider this an opportunity to better connect with that customer base. In any case, increasedmerchant involvement in the payment process might be the right tack to take. How that pans out depends on the merchant, the finance company, and lastly, any incoming governmental regulations. The Bottom Line Ultimately, the key to BNPL’s success—or failure—will be how risk factors like consumer behavior, fraud, and other pitfalls are managed. Although BNPL is likelyon the fast track to increased governmental regulation, retailers should be taking it upon themselves to encourage responsible BNPL use. After all, merchants stand to profit from BNPL’s outstanding growth as well. Meaning they, too, bear much of the responsibility for any credit emergencies that arise from its use.

Monica Eaton info@chargebacks911.com 877.634.9808