- New Zealand’s e-commerce market is projected to grow 38 percent between now and 2025 to reach $ 8.5 billion (USD).
- Buy now, pay later (BNPL) is the fastest growing online payment method and set to account for 17 percent of e-commerce transaction value by 2025.
- Growing at 21 percent CAGR through 2025, mobile wallets are the fastest-growing in-store payment method.
An early adopter of new payment technologies, New Zealand is at the forefront of the transition towards alternative payment methods, according to a new report released today from financial technology leader FIS (NYSE: FIS).
The 2022 Global Payments Report by Worldpay from FIS, now in its seventh year, examines current and future payments trends across 41 countries. It found that New Zealand’s e-commerce market will continue to demonstrate substantial growth of 38 percent between now and 2025.
At the same time, BNPL – already strong with 10 percent of e-commerce transaction value in 2021 – is forecasted to represent 17 percent of e-commerce transaction value in New Zealand by 2025, surpassing the report’s predictions for Australia (14 percent) and the UK (12 percent). At point-of-sale (POS), BNPL is projected to represent 6 percent of offline transaction value by 2025, second only to Sweden globally.
E-commerce Payment Trends
The FIS report found:
- New Zealand’s e-commerce market is set to grow at 8 percent CAGR through 2025 to reach $ 8.5 billion (USD).
- BNPL is New Zealand’s fastest-growing online payment method and projected to comprise 17 percent of e-commerce transaction value by 2025, the highest share in APAC.
- New Zealand’s leading online payment methods in 2021 were credit/charge cards accounting for 34 percent of e-commerce transaction value, followed by digital wallets (20 percent), and debit cards (16 percent).
- Credit/charge cards are on track to maintain their position as the leading e-commerce payment method through 2025 with a projected 30 percent share of transaction value.
Point-of-sale (POS) Payment Trends
The FIS report found:
- New Zealand’s leading in-store payment methods in 2021 were credit/charge cards at 42 percent of POS transaction value, followed by debit cards (31 percent) and cash (11 percent).
- Credit/charge cards are expected to comprise 36 percent of POS transaction value by 2025, retaining its position as the leading in-store payment method.
- BNPL is projected to account for 6 percent of POS transaction value by 2025, second only to Sweden globally.
- Growing at 21 percent CAGR through 2025, mobile wallets are the fastest-growing in-store payment method.
- The use of cash in New Zealand continues to decline and is projected to comprise just 10 percent of POS transaction value by 2025.
