The number of credit cards in the market has fallen by 7 per cent over the past year, Reserve Bank data shows, as more customers turn to buy now, pay later services as the COVID-19 crisis unfolds.

Data provided by Equifax shows inquiries made by buy now, pay later providers to check the credit history of a new customer fell from mid-March as the coronavirus hit, but are now higher than the number of checks being made by traditional credit card issuers.