Modern payment methods are changing the financial world as we know it. What was once exclusively brick and mortar, has now evolved into a rapidly-paced online environment with various options to suit contemporary needs. Here’s a look at how New Zealand’s preferred payment methods compare to the rest of the world, with a look at which methods may be favoured in the future.
Debit and Credit Cards: Ye Old Faithful
Credit cards are by far the preferred payment method for online purchases in New Zealand—the same being true for most countries across the globe. As of 2023, monthly electronic card payments in New Zealand accounted for approximately 8.8 billion NZD.
As of 2021, according to globaleconomy.com, New Zealand had a credit card ownership rate of just over 57%, placing it 16th on the list of 121 countries surveyed. In that regard, the country didn’t fare too badly when compared to the US, which had a credit card ownership rate of just over 66%. The UK came in with just over 62% ownership rate, while the number one country was Canada, with a whopping 82% credit card ownership.
On the other hand, debit cards are the third most popular payment method in New Zealand and around the world. New Zealand has a debit card penetration rate of 96.4%, placing it within the top 5 countries with the highest rates in that regard. The top spot goes to Denmark with 99%, closely followed by the Netherlands with 98.3%, and Sweden with 98.2%.
Globally, users are accustomed to making purchases using a debit or credit card. The transaction times are getting better and even when travelling internationally or making cross-border payments, there are options available that are safe and secure. However, while cards represent a familiar and trusted payment method, they are by no means the only ones increasing in popularity.
Cryptocurrency Popularity is Soaring
Cryptocurrencies are fast becoming one of the most popular payment methods. New Zealand, much like many other first-world countries, has hopped on the bandwagon, with many New Zealand businesses and retail outlets now offering crypto as a form of payment.
As far as online expenses go, New Zealanders have shown a growing affinity for online gambling. For iGaming enthusiasts, the fastest payout online casino in NZ offers lightning-fast withdrawals when payments are made using cryptocurrencies. According to Ben Horlock, the top casinos in this category are found offshore but can be accessed from NZ. One of the many pros of cryptocurrencies is how quick transactions are compared with more traditional payment methods. This is a major plus for online gaming and betting. The best crypto casinos offer near-instant transactions, providing a quick and easy experience, with more cryptos now accepted than ever before.
As of 2023, close to 20% of New Zealanders have some form of crypto investments. Not only does cryptocurrency’s underlying blockchain technology make online experiences a lot more secure, but transacting across borders is made more seamless and safe too. However, the fact that such transactions work through a decentralised financial system is what makes them so appealing to modern consumers.
e-Wallets: Increased Options
As of 2021, e-wallets have become extremely popular in New Zealand, with 20% of New Zealanders using their mobile in some way to make payments in person and online. Compared to the US, with 37%, New Zealand lags a bit with e-wallet use, though the numbers are growing.
By 2023, digital wallets had taken over as the globally preferred general payment method, even outshining debit and credit card payment methods globally. With options like PayPal long since becoming known as trusted brands, they are now even used for POS transactions, with digital wallets holding 30% of the market. Meanwhile, credit cards are at 22%, with debit cards following at 12%. These figures point toward the fact that digital wallet use will increase in New Zealand in the near future, as it has globally.
The Buy Now Pay Later Concept Shows Dramatic Growth
Buy now pay later payment methods are on the rise, with many making use of this option when provided by companies such as Klarna and Afterpay. As of 2023, New Zealand ranked second with 11% of consumers using this method. The highest percentage comes from Australia, with 15% using buy now pay later payment options. Those percentages are astronomical, considering the gap with the third and fourth highest being China and Malaysia at a paltry 4% each.
Conclusion
Looking into how New Zealand’s preferred payment methods compare to the rest of the world gives us some interesting insights. While debit and credit card payments remain the most trusted option for online payments, digital wallet options are taking over overall as New Zealand and the world’s preferred payment method—even for POS transactions. However, given its appeal as a decentralised financial system, it’s likely that cryptocurrencies will one day also grow to become as prominent as a payment method.