Savvy Kiwis Are Turning Everyday Spend Into Valuable Credit Card Rewards

Credit card spend is recovering in New Zealand with Kiwis quickly racking up rewards points through savvy spending, new research shows.

After a massive slump in spend due to the COVID-19 crisis, there is a resurgence in New Zealanders using credit cards to make daily purchases and earning rewards in the process. Credit card spend is steadily tracking back to pre-pandemic levels, although remains lower than its early 2020 highs.

According to Reserve Bank data, total credit card billings in New Zealand were $4 billion during June, up 5.4% from January. Canstar’s new research into credit card rewards shows that most credit card holders - 54% - use their credit cards for all day-to-day purchases as a way of increasing their rewards points balances.

The research also shows how credit card holders’ habits have shifted, with customers starting to turn back to earning Airpoints Dollars and travel rewards as travel rebounds. Kiwis’ overseas spend on credit cards in June 2022 was the highest recorded in a month since February 2020.

Canstar’s research was to find the Most Satisfied Customers, Credit Card Rewards winner, with American Express coming out on top for the fourth consecutive year.

Jose George, Canstar New Zealand General Manager, said the research showed Kiwis were thinking about their spend and how they could gain benefits. “It’s great to see New Zealanders being smart with their spending habits and thinking about how they can earn rewards. Inflation and rising mortgage rates have put many households under pressure, and keeping an eye on rewards is one way to offset the pressure.

“American Express consistently comes out ahead of its competitors in our research. It’s clear that their card members are very satisfied with the rewards they receive and we congratulate Amex on its success.”

Rob Bourne, Country Manager for American Express New Zealand, said: “Being recognised for the fourth consecutive year as having the most satisfied customers, because of the rich rewards they receive, is an incredible acknowledgement. At American Express we’re proud to help Kiwi Card Members turn their everyday spend into valuable rewards that help them travel further, and enjoy outstanding experiences.”

Credit cards - particularly those offering rewards - can be a very useful way to manage finances if balances can be repaid each month.

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