Regulatory Alerts2024-04-09
Helping Customers Pay Their BNPL Accounts on Time
The Dutch Authority for the Financial Markets (AFM) and BNPL provider Riverty conducted an experiment with over 34,000 customers to test the effectiveness of SMS reminders on payment behavior. The study found that sending an SMS reminder one day before the due date reduced the proportion of customers incurring late payment fees by at least one-fifth by addressing practical barriers like forgetfulness. The AFM encourages BNPL providers to design and measure such interventions to help consumers avoid costs, while noting that one in eight customers still incurred fees despite the intervention.
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