Market Trends of New Zealand Payments Industry
This section covers the major market trends shaping the New Zealand Payments Market according to our research experts:
Increasing use of credit card payment method
- New Zealand is making huge strides toward open banking. Payments NZ, in collaboration with six partners (ASB Bank, BNZ, Westpac, Datacom, Paymark, and TradeMe), conducted a pilot to test open banking and digital payments in the country in March 2018.
- Consumers in New Zealand prefer BNPL options. Klarna entered the New Zealand payments market in May 2021 to capitalize on this trend. For e-commerce purchases, Klarna provides both immediate and pay-later options, allowing customers to make payments after receiving the purchased items. Customers can pay in three or four equal installments using a debit or credit card with Klarna's interest-free installment payment option.
- Card payments are the most common payment method in New Zealand and include debit (including EFTPOS) and credit card payment products. Unlike cash payments, the card payment system is a complex web of technical infrastructure, arrangements, and standards involving a number of intermediaries. As a result, the cost of accepting card payments has become a significant overhead for merchants.
- Credit card payments are driving growth in online purchases in New Zealand, followed by PayPal, which accounted for roughly 30% of all online payment methods last year. PayPal has recently introduced a number of trusted New Zealand retail and service suppliers that accept PayPal payments in addition to transferring PayPal money to your bank account.
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Growth in usage of Visa card
- 'Buy Now, Pay Later' has grown in popularity in New Zealand in recent years. Buy Now Pay Later websites or apps allow customers to buy a product online right now without paying the full price. The supplier, such as Afterpay, pays the full price to the retailer, and the consumer repays the service provider in installments.
- Alternative payment methods are gaining popularity in New Zealand. To take advantage of this, the dosh digital wallet and mobile payment app launched in New Zealand in October 2021. It enables users to make peer-to-peer payments using their smartphones. Payments can be made directly to a mobile number in the user's address book or by scanning a QR code generated by the beneficiary in the app. dosh allows users to pay or be paid instantly for transactions under $500.
- Apple Pay, Apple's digital wallet, works with a variety of Apple devices, from the iPhone to the Apple Watch, and it launched in New Zealand with ANZ at the end of last year. ANZ has made the service available to customers who have an ANZ Visa Debit or an ANZ personal Visa credit card, and customers can set up Apple Pay through the ANZ goMoney app.
