Please Wait.....
Report
New Zealand Payments Market- Growth, Trends, COVID-19 Impact and Forecasts (2022 - 2027)
Market Report I 2022-06-01 I 100 Pages I Mordor Intelligence
Key Highlights
The New Zealand payments market is expected to grow at a CAGR of 15.97% over the forecast period (2022 - 2027). New Zealand has long been one of the highly developed electronic payments markets. Cash is rarely used, and consumers are quick to adopt new technology. The payment cards market is well established, with high consumer penetration and merchant acceptance.
Visa and Mastercard are betting big on contactless payments. Both companies' debit cards are contactless. In response to the coronavirus outbreak, Visa and Mastercard increased the contactless payment limit from NZ$80 ($53.96) to NZ$200 ($134.89), effective April 9, 2020. This should help boost contactless payments in the future.
Online payment habits in New Zealand are parallel to those in Australia, with credit and debit cards being the most popular payment methods. Like Australia, e-Wallets are gaining market share - PayPal and POLi, which is a must payment option to offer.
To capitalize on the growing preference for online shopping, Westpac partnered with Paymark in January 2018 to introduce Online EFTPOS. Customers can use the service to pay for online purchases using the banking app, eliminating the need to provide bank account or payment card information. The customer approves the payment via their bank's mobile app. Apart from Westpac, Online EFTPOS is supported by ASB, The Co-operative, and Heartland Bank.
The impact of the coronavirus outbreak on the New Zealand economy and the cards and payments industry. While transactional cash use has been declining in general, the COVID-19 pandemic has resulted in a sharp increase in demand for cash in New Zealand. The Reserve Bank issued approximately $800 million in the weeks leading up to the nationwide lockdown in March 2020, compared to $150 million in March 2019.
According to an EFTPOS NZ9 analysis, contactless payments peaked at 37 % of all payments (by number) through their terminals during the nationwide lockdown, compared to about 17% in a 'normal' month before the pandemic. When compared to before COVID-19, the value of contactless payments increased by about 10%.
Key Market Trends
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.
Increasing value of card payments
'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.
Competitive Landscape
Credit cards (VISA, MasterCard, and American Express) are the most commonly used online payment methods in New Zealand, followed by PayPal. In addition to these global brands, Kiwis frequently use POLi and AfterPay when shopping online. Cards account for well over half of New Zealand's e-commerce payments market, accounting for 56% of all transactions in the year 2020.
March 2022- Marriott Bonvoy and PayPal Melbourne Fashion Festival have announced a new partnership. Marriott Bonvoy will offer members various exclusive and enriching experiences during the Paypal Melbourne Fashion Festival in 2022 as the official hotel partner.
December 2021- Plus500, a global multi-asset fintech group, has added three new local payment methods: PayNow, POLi, and Google Pay. Customers on the Plus500 trading platform now have even more options for conducting secure transactions. This is yet another step in the company's effort to improve the user experience.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
1 INTRODUCTION
1.1 Study Assumptions and Market Definitions
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Stakeholder Analysis
4.3 Industry Attractiveness-Porter's Five Force Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Evolution of the payments landscape in the country
4.5 Key market trends pertaining to the growth of cashless transaction in the country
4.6 Impact of COVID-19 on the payments market in the country
5 MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Growing use of 'Buy Now, Pay Later' scheme
5.1.2 Increasing availability of digital wallet based on mobile payment app
5.2 Market Challenges
5.2.1 Creating a mobile experience that persuades customers to convert their browsing into purchases.
5.3 Market Opportunities
5.3.1 Increasing Use of Online Banking
5.3.2 New Zealand's digital payment market has grown
5.4 Key Regulations and Standards in the Digital Payments Industry
5.5 Analysis of major case studies and use-cases
5.6 Analysis of key demographic trends and patterns related to payments industry in the country New Zealand (Coverage to include Population, Internet Penetration, Banking Penetration/Unbanking Population, Age & Income etc.)
5.7 Analysis of the increasing emphasis on customer satisfaction and convergence of global trends in the country New Zealand
5.8 Analysis of cash displacement and rise of contactless payment modes in the country New Zealand
6 Market Segmentation
6.1 By Mode of Payment
6.1.1 Point of Sale
6.1.1.1 Card Payments (includes Debit Cards, Credit Cards, Bank Financing Prepaid Cards)
6.1.1.2 Digital Wallet (includes Mobile Wallets)
6.1.1.3 Cash
6.1.1.4 Others
6.1.2 Online Sale
6.1.2.1 Card Payments (includes Debit Cards, Credit Cards, Bank Financing Prepaid Cards)
6.1.2.2 Digital Wallet (includes Mobile Wallets)
6.1.2.3 Others (includes Cash on Delivery, Bank Transfer, and Buy Now, Pay Later)
6.2 By End-user Industry
6.2.1 Retail
6.2.2 Entertainment
6.2.3 Healthcare
6.2.4 Hospitality
6.2.5 Other End-user Industries
7 Competitive Landscape
7.1 Company Profiles
7.1.1 ANZ Bank New Zealand Limited
7.1.2 ASB Bank Limited
7.1.3 Westpac NZ
7.1.4 Visa Inc
7.1.5 Mastercard Inc
7.1.6 American Express Company
7.1.7 PayPal Holdings, Inc
7.1.8 Apple Inc
7.1.9 Google
7.1.10 POLi NZ
8 Investment Analysis
9 Future Outlook of the Market
- Not Sure / Need Reassuring
- Confirm Content
-
Content is provided by our partners and every effort is made to make Market Report details as clear as possible. If you are not sure the exact content you require is included in this study you can Contact us to double check. To do this you can:
Use the ‘? ASK A QUESTION’ below the license / prices and to the right of this box. This will come directly to our team who will work on dealing with your request as soon as possible.
Write to directly on support@scotts-international.com with details. Please include as much information as possible including the name of report or link so our staff will be able to work on you request.
Telephone us directly on 0048 603 394 346 and an experienced member of team will be on hand to answer.
-
- Sample Pages
-
With the vast majority of our partners we can obtain Sample Pages to support your decision. This is something we can arrange without revealing your personal details.
It is important to note that we will not be able to provide you the exact data or statistics such as Market Size and Forecasts. Sample pages usually confirm the layout or the Categories included in Charts and Graphs, excluding specific data.
To ask for Sample Pages by contact us through ‘? ASK A QUESTION’, support@scotts-international.com, or by telephoning 0048 603 394 346.
-
- Check for Alternatives
-
Whilst we try to make our online platform as easy to use as possible there is always the possibility that a better alternative has not been found in your search.
To avoid this possibility Contact us through ‘? ASK A QUESTION’, support@scotts-international.com, or by telephoning 0048 603 394 346 and a Senior Team Member can review your requirements and send a list of possibilities with opinions and recommendations.
-
- Confirm Content
- Prices / Formats / Delivery
- Prices
-
All prices are set by our partners and should be exactly the same as those listed on their own websites. We work on a Revenue share basis ensuring that you never pay more than what is offered elsewhere.
Should you find the price cheaper on another platform we recommend you to Contact us as we should be able to match this price. You can Contact us though through ‘? ASK A QUESTION’, support@scotts-international.com, or by telephoning 0048 603 394 346.
-
- Discounts
-
As we work in close partnership with our Partners from time to time we can secure discounts and assist with negotiations, this is part of our personalised service to you.
Discounts can sometimes be arranged for speedily placed orders; multiple report purchases or Higher License purchases.
To check if a Discount is possible please Contact our experienced team through ‘? ASK A QUESTION’, support@scotts-international.com, or by telephoning 0048 603 394 346.
-
- Available Currencies
-
Most Market Reports on our platform are listed in USD or EURO based on the wishes of our Partners. To avoid currency fluctuations and potential price differentiations we do not offer the possibility to change the currency online.
Should you wish to pay in a different currency to that advertised online we do accept payments in USD, EURO, GBP and PLN. The price will be calculated based on the relevant exchange rate taken from our National Bank.
To pay in a different above currency to that advertised online please Contact our team and a quotation will be sent within a couple of hours with payment details.
-
- Licenses
-
License options vary from Partner to Partner as is usually based on the number of Users that will benefitting from the report. It is very important that License ordered is not breached as this could have potential negative consequences for you individually or your employer.
If you have questions or need confirmation about the specific license we recommend you to Contact us and a detailed explanation will be provided.
-
- Global Site License
-
The Global Site License is the most comprehensive license available. By selecting this license, the Market Report can be shared with other ‘Allowed Users’ and any other member of staff from the same organisation regardless of geographic location.
It is important to note that this may exclude Parent Companies or Subsidiaries.
If you have questions or need confirmation about the specific license we recommend you to Contact us and a detailed explanation will be provided.
-
- Formats
-
The most common format is PDF, however in certain circumstances data may be present in Excel format or Online, especially in the case of Database or Directories. In addition, for certain higher license options a CD may also be provided.
If you have questions or need clarification about the specific formats we recommend you to Contact us and a detailed explanation will be provided.
-
- Delivery
-
Delivery is fulfilled by our partners directly. Once an order has been placed we inform the partner by sharing the delivery email details given in the order process.
Delivery is usually made within 24 hours of an order being placed, however it may take longer should your order be placed prior to the weekend or if otherwise specified on the Market Report details page. Additionally, if details have been not fully completed in the Order process a delay in delivery is possible.
If a delay in delivery is expected you will be informed about it immediately.
-
- Shipping Charges
-
As most Market Reports are delivered in PDF format we almost never have to add additional Shipping Charges. If, however you are ordering a Higher License service or a specific delivery format (e.g. CD version) charges may apply.
If you are concerned about additional Shipping Charges we recommend you to Contact us to double check.
-
- Prices
- Ordering
- By Credit Card
-
We work in Partnership with PayU to ensure payments are made securely in a fast and effortless way. PayU is the e-payments division of Naspers.
Naspers operates in over 133 International Markets and ranks 3rd Globally in terms of the number of e-commerce customers served.
For more information on PayU please visit: https://www.payu.pl/en/about-us
-
- By Money Transfer
-
If you require an invoice prior to payment, this is possible. To ensure a speedy delivery of the Market Report we require all relevant company details and you agree to maximum payment terms of 30 days from receipt of order.
With our regular clients deliver of the Market Report can be made prior to receiving payment, however in some circumstances we may ask for payment to be received before arranging for the Market Report to be delivered.
-
- By Credit Card
- Security
- Website security
-
We have specifically partnered with leading International companies to protect your privacy by using different technologies and processes to ensure security.
Everything submitted to Scotts International is encrypted via SSL (Secure Socket Layer) and all personal information provided to Scotts International is stored on computer systems with limited access in controlled environments.
-
- Credit Card Security
-
We partner with PayU (https://www.payu.pl/en/about-us) to ensure all credit card payments are made securely in a fast and effortless way.
PayU offers 250+ various payment channels and eWallet services across 4 continents allowing buyers to pay electronically, whether on a computer or a mobile device.
-
- Website security