Payment cards dominate e-commerce payments in New Zealand with a 57% share, GlobalData reveals

Payment cards are the preferred payment method for e-commerce purchases in New Zealand, accounting for 57% share in 2023, reveals EPI publisher GlobalData.

GlobalData e-commerce analytics tool

GlobalData E-Commerce Analytics shows New Zealand’s e-commerce market grew 14% in 2023, reaching NZD 12.3 billion ($7.6 billion), as more consumers shift from offline shopping in favor of online. The e-commerce market is estimated to grow by 12.1% and reach NZD 13.8 billion ($8.5 billion) in 2024.

Kartik Challa, senior banking and payments analyst at GlobalData, said, “The e-commerce market is well-developed, supported by the country’s robust technology infrastructure that ensures the availability of high-speed internet. In addition, the availability of secure online payment systems, the development of logistics services and the growing number of online shoppers have all supported the growth of e-commerce.”

Additionally, attractive offers during key online shopping events, such as Black Friday, Singles’ Day, Click Frenzy and Cyber ​​Monday, have significantly contributed to the development of e-commerce.

Meanwhile, the presence of secure payment solutions such as Mastercard Identity Check and faster checkout options such as Click to Pay and PayPal One Touch have encouraged consumers to shop online.

GlobalData 2023 Financial Services Consumer Survey

GlobalData’s 2023 Financial Services Consumer Survey found that around 86% of New Zealand consumers reported having shopped online in the last six months, while only 4.3% of respondents said they had never shopped online .

Among the various tools used for e-commerce purchases, payment cards are the most preferred, as they demonstrate a strong attachment to this traditional payment method. Together, they account for 57% of the share in 2023, with credit and charge cards alone accounting for 36.6%. Use of the card depends on benefits such as loyalty points, cash back, discounts from merchants and the availability of installment payment options.

While payment cards still dominate, alternative payment solutions are also increasingly being used for online purchases, accounting for a combined 23.2% share, with some popular brands including Afterpay, Apple Pay and PayPal.

Meanwhile, bank transfers are also used for e-commerce payments, and most banks provide online banking services as well as the ability to transfer funds quickly and securely, making it easier for consumers to use this payment method. Cash accounted for just 3% of the share, reflecting the high use of electronic payment methods in the country.

Challa added: “New Zealand’s e-commerce market is showing continued growth and is expected to reach NZ$20.2 billion by 2028, with a projected compound annual growth rate of 7.6% over 2024-2028. Evolving authentication measures that provide greater security and faster checkout options will further increase consumer confidence and encourage online payments.”

“Payment cards dominate e-commerce payments in New Zealand with 57% share, says GlobalData” was originally created and published by Electronic Payments International, a brand owned by GlobalData.

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