Point #2 is patently false. Yes, it sounds counter-intuitive because it's not true. Giving the customer more payment options always increases sales, because it expands who can be a customer. If some product is desired at all then having maximum options to pay for it is a bonus/benefit, not a drawback.
Do you know that because you've actually looked at data and measured it or are you just assuming, because the person you're quoting likely has.
It's known as overchoice in the consumer field.
http://en.wikipedia.org/wiki/OverchoiceHaving more choices, on the surface, appears to be a positive development; however it hides an underlying problem: faced with too many choices, consumers have trouble making optimal choices, and thus as a result can be indecisive, unhappy, and even refrain from making the choice (purchase) at all.