NZ’s eCommerce market set to grow as demand for alternative payment methods increases
New Zealand’s eCommerce market is projected to grow 38% between now and 2025 to reach UD$8.5 billion, according to a new report from FIS.
The 2022 Global Payments Report by Worldpay from FIS, now in its seventh year, examines current and future payments trends across 41 countries.
The report found buy now, pay later is the fastest growing online payment method and set to account for 17% of eCommerce transaction value by 2025, while mobile wallets are the fastest growing in-store payment method growing at 21% CAGR through to 2025.
According to FIS, as an early adopter of new payment technologies, New Zealand is at the forefront of the transition towards alternative payment methods.
The FIS report found:
- New Zealand’s eCommerce market is set to grow at 8% CAGR through 2025 to reach US$8.5 billion
- BNPL is New Zealand’s fastest growing online payment method and projected to comprise 17% of eCommerce 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% of eCommerce transaction value, followed by digital wallets (20%), and debit cards (16%).
- Credit/charge cards are on track to maintain their position as the leading eCommerce payment method through 2025 with a projected 30% share of transaction value.
The FIS report found New Zealand’s leading in-store payment methods in 2021 were credit/charge cards at 42% of POS transaction value, followed by debit cards (31%) and cash (11%).
Credit/charge cards are expected to comprise 36% of POS transaction value by 2025, retaining its position as the leading in-store payment method. Meanwhile, BNPL is projected to account for 6% of POS transaction value by 2025, second only to Sweden globally.
Growing at 21% CAGR through 2025, mobile wallets are the fastest growing in-store payment method, the report found, while the use of cash in New Zealand continues to decline and is projected to comprise just 10% of POS transaction value by 2025.
The Global Payments Report by Worldpay from FIS offers a snapshot of the payments landscape: globally, by region and in 41 select markets.
The report tracks consumer payments when shopping online and at the point of sale, identifies key payment trends including B2B and C2B real-time payments, and projects future scenarios for payment method shares as well as market size.
The report’s data was collected using a survey of 46,000 consumers, secondary research, and extensive validation by payments experts from each region; the complete research methodology is published as an appendix to the report. Published continuously since 2015, the Global Payments Report by Worldpay from FIS is an industry benchmark used by merchants, financial institutions, press and researchers around the world.