A day after NAB launched a zero-rate credit card, Commonwealth Bank has announced that it will offer a similar product.

CBA’s Neo has no interest charges, late fees or foreign exchange fees. But it has monthly fees: A$12 for customers with a $1000 limit; $18 for customers with a $2000 limit and $22 a month for customers with a $3000 limit (the maximum limit available).

The monthly fee is not charged if the card is not used and the balance is zero. Minimum repayments are $25 or 2 per cent of the balance, whichever is greater.

NAB’s StraightUp also offers $1000, $2000 and $3000 limits. Minimum repayments are higher ($110 month on a $3000 limit).

NAB’s monthly fees are $10 on a $1000 limit, $15 on a $2000 limit and $20 on a $3000 limit.

The banks are addressing two challenges with these new cards. They are offering credit cards with features that are more like popular buy now pay later offerings.

And they are trying to breathe some life into a struggling product category. According to the latest Reserve Bank data the number of personal credit and charge card accounts in July was 13.1 million – the lowest number since 2008. The number of commercial accounts was 816,000 – also the lowest since 2008.