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A different kind of credit-card decline

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.

In Australia, the growth in buy now, pay later accounts has been accompanied by a decline in credit-card accounts.
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To read the article, see “Reinventing credit cards: Responses to new lending models in the US,” June 23, 2022.