Kiwis Continue To Choose Debit Over Credit

Kiwis Continue To Choose Debit Over Credit

New Zealanders are continuing to purchase with EFTPOS rather than rely on credit cards, show the latest Paymark figures. Debit card use was up 7.8 percent per annum for the month of May while credit card use remained flat at just 0.4 percent rise.

Paymark CEO, Simon Tong, commented that it was positive to see people were still choosing to spend money they already had in the bank, a trend that emerged earlier in the year, rather than racking up credit card debt during tougher economic times.

“As a nation, we are using cards more and more as the preferred method of payment – a trend that has been consistent for some time now. We are spending money that’s already available to us and possibly reducing the risk of getting into debt through increased credit card use,” he said.

Paymark data shows $3.45 billion was spent across the country last month, down 0.8 percent on May 2008. The number of card transactions (including debit and credit) was up 6 percent overall.

A decline in credit card use was significant at video, fuel and agriculture outlets, and also for charities.

The largest overall spending decline for the month was a 19 percent drop in spending at service stations, largely impacted by lower fuel prices. Accommodation and travel outlets reported negative growth for the month, with travel spending down 14 percent.

Conversely, food and liquor outlets, including liquor retailers, remained amongst the fastest growing sectors. Clothing and footwear retailers also experienced moderate growth for the month - up 8 and 7 percent respectively.

Paymark processes more than 60 percent of all retail electronic transactions in New Zealand, putting us ahead of any other country in the world in terms of EFTPOS use.

ENDS

© Scoop Media