New Zealand e-commerce market set to grow as demand for alternative payment methods increases
The New Zealand e-commerce market is expected to grow 38% by 2025 to reach US$8.5 billion, according to a new report from FIS.
FIS’ Worldpay Global Payments Report 2022, now in its seventh year, examines current and future payment trends in 41 countries.
The report found that buy now, pay later is the fastest growing online payment method and is expected to account for 17% of e-commerce transaction value by 2025, while mobile wallets are the fastest growing in-store payment platform, with a CAGR of 21%. 2025.
According to FIS, as a pioneer in new payment technologies, New Zealand is at the forefront of the transition to alternative payment methods.
The FIS report revealed:
- The New Zealand e-commerce market is expected to grow at a CAGR of 8% through 2025 to reach US$8.5 billion
- BNPL is the fastest growing online payment method in New Zealand and is expected to account for 17% of e-commerce transaction value by 2025, the highest share in APAC.
- New Zealand’s top online payment methods in 2021 were credit/payment cards accounting for 34% of e-commerce transaction value, followed by digital wallets (20%) and debit cards (16%).
- Credit/payment cards are on track to maintain their position as the leading e-commerce payment method through 2025, with a projected 30% share of transaction value.
The FIS report found that the top in-store payment methods in New Zealand in 2021 were credit/cash cards at 42% of point-of-sale transaction value, followed by debit cards (31%) and cash (11%).
Credit/cash cards are expected to account for 36% of point-of-sale transaction value by 2025, maintaining their position as the primary in-store payment method. Meanwhile, BNPL is expected to account for 6% of POS transaction value by 2025, second only to Sweden in the world.
With a CAGR of 21% through 2025, mobile wallets are the fastest growing in-store payment method, according to the report, while cash usage in New Zealand continues to decline and is expected to account for only 10% of the value of POS transactions by 2025.
FIS’ Worldpay Global Payments Report provides an overview of the payments landscape: globally, by region and in 41 selected markets.
The report tracks consumer payments for online and point-of-sale purchases, identifies key payment trends, including B2B and C2B real-time payments, and projects future scenarios for payment method shares as well than the size of the market.
Data for the report was gathered using a survey of 46,000 consumers, secondary research, and extensive validation by payments experts in each region; the full research methodology is published as an appendix to the report. Published continuously since 2015, Worldpay’s FIS Global Payments Report is an industry benchmark used by merchants, financial institutions, the press and researchers around the world.