In Australia, credit-card accounts have declined by about 6 percent a year, while buy now, pay later (BNPL) accounts have grown by more than 40 percent a year since 2017. Because of its higher interchange fees and different market fundamentals, the United States may see a more muted shift than in Australia, but it appears that replacement is under way in the States.
To read the article, see “Reinventing credit cards: Responses to new lending models in the US,” June 23, 2022.