The diffusion of bankcard in Australia: A note

The purpose of this note is to quantify the degree of market penetration and diffusion by Bankcard in the Australian consumer credit sector. A modified demand-determined logistic model of diffusion is estimated for the sample period 1976(4)–1983(1) in which the saturation level is assumed to be driven by the weighted interest differential between Bankcard and competing credit instruments. The diffusion speed of Bankcard is shown to be more rapid than that of U.S. bank credit cards but somewhat slower than that of a new deposit instrument, saving-investment accounts analysed in Broadbent, Clements and Johnson (1981).