New Zealand’s E-commerce Market Set To Grow 38 Percent By 2025 With Demand Increasing For Alternative Payment Methods
New Zealand’s e-commerce market set to grow 38 percent by 2025 with demand increasing for alternative payment methods, new FIS report reveals
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.
To download the complete report, including the methodology, please visit https://worldpay.globalpaymentsreport.com/
the Global Payments Report
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.
FIS is a leading provider of technology solutions for merchants, banks and capital markets firms globally. Our employees are dedicated to advancing the way the world pays, banks and invests by applying our scale, deep expertise and data-driven insights. We help our clients use technology in innovative ways to solve business-critical challenges and deliver superior experiences for their customers. Headquartered in Jacksonville, Florida, FIS ranks #241 on the 2021 Fortune 500 and is a member of Standard & Poor’s 500® Index. To learn more, visit www.fisglobal.com. Follow FIS on Facebook, LinkedIn and Twitter (@FISGlobal).