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This was the article in today's Advertiser. Answers just how NAB plan to make their money.

National Australia Bank will offer the nation’s first ever no-interest credit card, with the major bank looking to claw back younger customers shying away from the traditional lending product. The major bank’s StraightUp credit card will provide financially-conscious customers up to $3000 at a zero interest rate, with the budget lending card not attracting any annual, late or foreign currency fees, but a monthly fee is charged. The charge is between $10 and $20, depending on the credit limit, and monthly fees will not be incurred if the card is not in use. The card’s introduction coincides with the surge in Australians opting for no-interest buy now, pay later services such as Afterpay and Zip, which has caused a plunge in credit card use among younger spenders.
NAB personal banking executive Rachel Slade said unlike other sectors of the payments industry, credit cards had not been able to keep up with changing customer needs.“ Credit cards have not really evolved in recent years,” she said.“ But our customers’ needs and expectations are changing and we want to change with them. ”NAB said unlike buy now, pay later lenders, the card offered users a continual line of credit which could be used anywhere. Most buy now, pay later services can only be accessed on certain websites or retail stores where the merchant has an account with the provider. With services such as Afterpay, if you miss a payment, you aren’t able to buy or book anything else until you settle your account.
The coronavirus pandemic and ensuing recession has caused a growing number of Australians to pay off as much of their credit card debt as possible. On September 4, both ANZ and CBA said customers had wiped about $2 billion of credit card debt from the banks’ loan books since the beginning of the downturn. According to NAB research, younger Australians are conscious about their spending and savings behaviour, with 85 per cent of credit card holders aged between 18-34 believing it is important to feel in control of their usage.