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LOL you've answered your own question. "Why the clickbait title?" Because... clickbait title:)

"The frequent transactional nature of BNPL loans have the potential to unduly negatively impact credit scores even when they're repaid as agreed.” ~ https://thefinancialbrand.com/129599/why-consumers-dont-think-bnpl-is-debt-and-why-that-matters/.

AFAIK, at least in USA, BNPL does not feed into traditional CRAs, so I'm not sure if BNPL defaulters will face any impact on their credit ratings / scores.

In line with my general preference for lightbrush regulation, I'm going to go out on a limb and say that, at least as of now, BNPL should be left between lender and borrower.

Not that I can see any mention in the article that Visa has reduced Interchange for Amazon but assuming that's the case, let's see if Amazon passes on the reduced fees to consumers by way of discounts. But I won't hold by breath. Merchants have always incurred lower MDR on Debit Card versus Credit Card but I haven't come across a single merchant who gives a discount for shoppers paying with Debit Card compared to Credit Card.

Banks and FIs should not be held responsible if the century-old saying "A sucker is born every minute" is still true. Consumers are experts because Google. They should use their expertise to decide what's fit for purpose and what's not. There's no case for spoonfeeding.

This is unwarranted regulatory overreach on the part of FCA.

Are you saying that the average APP Fraud Scammee would be happy to spend £8,655 with the real (say) Marilyn Monroe and it's a scam only because some Rando claims to be Marilyn Monroe?

LOL I'm waiting for "Visa survey reveals 0% can calculate how much BNPL purchases would cost after late payment fees."

H/T Klarna survey reveals 0% can calculate how much credit card purchases would cost after interest.

LOL this is probably the ONLY survey with a 0% finding!

This is one more financial product where regulation can drive more disclosure / information but cannot ensure more understanding / financial literacy.

Reminds me of the following distinction made by Malcom Gladwell between Puzzle and Mystery:

Puzzle: Pivots around lack of information. Can be solved with more information.

Mystery: All the information is available to everyone but the mystery can be resolved only when someone has the time, expertise and tools to analyze the information and spot the hidden red flags.

@FinextraMember: There can be no doubt that VC-backed companies have achieved in 5 years what traditional businesses have taken 20 years or more. Effectivness is what they're after. Inefficient use of capital to create money-losing businesses is par for the course in that model. 

In a slightly different, but still relevant, context, Byrne Hobart makes a similar point about the $100B fraud suspected in Covid relief funding in USA.

I've been selling IT to Banks and FIs for decades. 20 years ago, if I'd told somebody that an article on banking technology in 2022 will open with "legacy systems", people would have told me to get my head examined.

But it's not your fault. It just shows how hard it is to make predictions. 

The way I see it, the cloud infra market is headed for AWS-Azure duopoly, so, I see Egress Charges skyrocketing in future. Which is the exact opposite of your prediction.

Your post is about what's holding back at present. I submit that it should restrict itself to present facts, and not indulge in crystalball gazing, which, as we've seen, can lead to aspersions being cast on the sanity of the predition maker. 

ATM fees is not a suitable analogy in this context. For one, your post is B2B where pricing is unregulated whereas ATM charge is B2C where pricing is regulated in many countries. For another, in advanced markets, there's no concept of charging for ATM only beyond a few initial free transactions.

"Most BNPL propositions are only suitable for consumers with the highest credit ratings."

Is that right?

According to the popular narrative, BNPL preys on the vulnerable and pushes them into debt trap. That hardly sounds like the cohort of consumers with highest credit ratings.