New Zealand consumers have significantly increased their international online spending, engaging in transactions across 149 countries this holiday season.
Data released by Wise, a company specialising in international money transfers, highlighted the spending habits of New Zealanders using its multi-currency debit card over a four-week period encompassing Black Friday and Cyber Monday sales. These shoppers sought competitive deals globally, expanding their reach to locations including Kyrgyzstan, Belize, Paraguay, and Seychelles.
According to the data, the UK, USA, Australia, Netherlands, and Ireland were the top destinations for purchases, with average transaction amounts in these countries ranging from NZD $104.90 to NZD $159.70. Notably, the average transaction amount in the USA experienced a 38% increase, while Australia's increase was 4% compared to the previous year's corresponding period.
Tristan Dakin, Wise's Country Manager, noted that the wider trend of international buying aligns with increased business costs and a prolonged Black Friday shopping window, providing opportunities for New Zealand families to find savings amidst economic pressures. "This year's Black Friday sales started earlier in November and extended further into December, which no doubt came as welcome relief to the many Kiwi families who're still feeling the pinch of the cost of living crisis in the lead up to Christmas," Dakin stated.
Dakin emphasised the cost savings Kiwis can achieve by circumventing traditional bank fees on foreign transactions. "It shows that during challenging economic times, Kiwis are looking far and wide to find the best bargains to make their money go the extra mile. Borders are no real barrier, especially for those who know how to avoid expensive bank fees on international transactions," he said.
Traditional banks often impose fees on international purchases, including transaction and currency exchange fees, which can amount to 2-5% of the transaction. Dakin remarked on these hidden costs: "Far too many Kiwis are getting caught out by these hidden and often unfair international transaction fees when making purchases online."
Highlighting consumer behaviour, Dakin reported, "The good news is that 6% of Kiwis are now using Wise, and more and more Kiwis are wising up to smarter spending when it comes to international purchases." He suggested that even minor savings on bank fees could enhance festive spending: "Whether you're shopping for two, three or 10 people this Christmas, avoiding unnecessary fees when shopping online can make for a much merrier (and cheaper) festive season."
Wise provided advice to avoid extra charges, including paying in local currencies to bypass "dynamic currency conversion" fees and avoiding the use of local bank cards for international transactions.
