Don't get Visa and Mastercard confused with a credit card that is actually a banking product so it's the banks that lose out.
But with low interest rate environment squeezing profit margins and with reduced profitability and higher bad debt provisioning putting their capital ratios under pressure they are simply not in a position to fight back against BNPL.
Also worth noting that banks are more concerned about their mortgage books than they are about their credit card business which is unsecured, very risky and hence very expensive for banks in the amount of capital they need to gold against it.
The most you'll see is equity stakes like CBA but with COVID-19 even that's off the table for the time being.
Disclosure: I work in banking.
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