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The Cards and Payments Industry in New Zealand: Emerging trends and opportunities to 2020

The Cards and Payments Industry in New Zealand: Emerging trends and opportunities to 2020

Summary

New Zealand’s cards and payments industry is well developed, and consumers are prolific users of payment cards. The frequency of card use was 116.2 transactions per card in 2016. This was higher than Asia Pacific peers South Korea, Singapore, Hong Kong, Japan, and Taiwan but marginally lower than Australia (116.3).

Consumers in New Zealand have traditionally been debt-conscious. They prefer to pay with available funds rather than on credit, and are therefore more inclined to use debit cards than pay-later cards. In terms of transaction value, debit cards accounted for 60.5% of the overall payment card market in 2016. Debit card penetration in New Zealand is 251.4 cards per 100 individuals, higher than Singapore, Australia, and Hong Kong. In contrast, pay-later card penetration remains low at 57.5 cards per 100 individuals - the lowest in the region.

New Zealand has the lowest cash use among the OECD countries. According to a February 2015 MasterCard survey, 49% of survey participants expect cash payments to cease in the next 10 years. The country leads other OCED countries in terms of cashless payments, with four of every five payments made electronically.

Banks and payment companies are taking regular initiatives to improve financial literacy in New Zealand. This has resulted in high banking penetration, driving demand for banking products such as current accounts and debit cards. Non-banking companies are pushing for a share of New Zealand’s pay-later card market. For instance, domestic loan and insurance provider Gem offers credit cards with a number of benefits, such as low interest rates and reward programs.

The report The Cards and Payments Industry in New Zealand: Emerging trends and opportunities to 2020 provides top-level market analysis, information and insights into the New Zealand's cards and payments industry.

In particular, this report provides the following -

  • Current and forecast values for each market in the New Zealand's cards and payments industry, including debit, credit and charge cards.
  • Detailed insights into payment instruments including credit transfers, cheques, direct debit, and payment cards. It also, includes an overview of the country's key alternative payment instruments.
  • E-commerce market analysis and payment methods.
  • Analysis of various market drivers and regulations governing the New Zealand's cards and payments industry.
  • Detailed analysis of strategies adopted by banks and other institutions to market debit, credit and charge cards.
Companies Mentioned in this report: ANZ Bank, Westpac, ASB Bank, Bank of New Zealand, Kiwibank, EFTPOS, Visa, Mastercard, American Express.

Scope
  • Alternative payments are slowly gaining traction among New Zealanders with the emergence of a number of payment options, with the most notable launches being Apple Pay in October 2016 and Android Pay in December 2016. Apple Pay enables users to make in-store, in-app, and browser payments. Apple Pay can be used with iPhones and Apple watches by placing the device near the terminal, along with placing a finger on Touch ID. The wallet allows customers to make payments of up to $55.40 (NZD80) without using a PIN. In December 2015, Visa launched its Visa Checkout online payment service in New Zealand, allowing consumers to make payments with just a username and password, as opposed to giving credit card details and an expiry date for each transaction. Other alternative payment solutions - including PayPal, POLi, and Masterpass - are also available in New Zealand.
  • Banks in New Zealand are focusing on innovation to improve services for individual and business customers. For instance, Westpac launched the Westpac One digital banking platform in February 2015. Westpac One can be used on smartphones, tablets, and desktop computers to apply for everyday banking products such as accounts, term deposits, home and personal loans, and credit cards. Similarly, in October 2015 ANZ updated its FastPay mobile banking app, which was initially launched in October 2013. The app allows business customers to process Visa, Mastercard, and EFTPOS transactions using smartphones. With ANZ FastPay, users can have more than one card reader, smartphone, or tablet linked to a single business account. The bank intends to extend the service to a wide range of businesses such as gardeners, plumbers, and personal trainers.
  • Chinese students and tourists are the largest pool of overseas residents in New Zealand. To serve these consumers, ANZ started accepting UnionPay payment cards at its ATMs and POS terminals from January 2016. ANZ also became the first bank in the country to accept QuickPass, UnionPay’s contactless mobile payment (m-payment) service. Similarly, Industrial and Commercial Bank of China (New Zealand) offers a wide range of banking services to Chinese consumers in New Zealand, including bank accounts, remittance services, and dual-currency cards.
Reasons to buy
  • Make strategic business decisions, using top-level historic and forecast market data, related to the New Zealand's cards and payments industry and each market within it.
  • Understand the key market trends and growth opportunities in the New Zealand's cards and payments industry.
  • Assess the competitive dynamics in the New Zealand's cards and payments industry.
  • Gain insights into marketing strategies used for various card types in New Zealand.
  • Gain insights into key regulations governing the New Zealand's cards and payments industry.


  • Executive Summary
    • Market overview
    • Key facts
      • Table New Zealand: key facts, 2016
      • Table New Zealand: regional benchmarking of payment cards, 2016
    • Top five industry events
  • Payment Instruments
    • Current payment environment
      • Table Figure 1: New Zealand: payment instrument shares by transaction value (%), 2012 vs 2016
      • Table Figure 2: New Zealand: payment instrument shares by transaction volume (%), 2012 vs 2016
  • E-Commerce and Alternative Payments
    • E-commerce market analysis
      • Table Figure 3: New Zealand: e-commerce value
    • Alternative payment solutions
      • PayPal
      • goMoney Wallet
      • Visa Checkout
      • POLi
      • paysafecard
      • Masterpass
      • Apple Pay
      • Android Pay
  • Regulations in the Cards and Payments Industry
    • Regulatory framework
    • AML
    • FDI regulations
      • Table New Zealand: mode of entry of foreign banks
  • Analysis of Cards and Payments Industry Drivers
    • Table Figure 4: New Zealand: population and economic indicators
    • Table Figure 5: New Zealand: ATMs, POS terminals, and household consumption
  • Payment Cards
    • Table Figure 6: New Zealand: payment card transaction value and cards in circulation, 2012–20f
  • Debit Cards
    • Debit card market analysis
      • Table Figure 7: New Zealand: debit card penetration and turnover per card
    • Competition in the debit card market
      • Table Figure 8: New Zealand: debit card scheme and issuer transaction value shares, 2016
    • Debit card comparison
      • Table New Zealand: debit card comparison and key features, 2016
  • Pay-later Cards
    • Pay-later card market analysis
      • Table Figure 9: New Zealand: pay-later card penetration and turnover per card
    • Competition in the pay-later card market
      • Table Figure 10: New Zealand: pay-later card scheme and issuer transaction value shares, 2016
    • Pay-later card comparison
      • Table New Zealand: premium credit card comparison and key features, 2016
      • Table New Zealand: charge card comparison and key features, 2016
  • Appendix
    • Abbreviations and acronyms
    • Supplementary data
      • Table New Zealand: payment instrument transaction values (NZDbn), 2012–16e
      • Table New Zealand: payment instrument transaction values ($bn), 2012–16e
      • Table New Zealand: payment instrument transaction volumes (millions), 2012–16e
      • Table New Zealand: payment cards in circulation by type (millions), 2012–20f
      • Table New Zealand: volume of payment card transactions (millions), 2012–20f
      • Table New Zealand: value of payment card transactions (NZDbn), 2012–20f
      • Table New Zealand: value of payment card transactions ($bn), 2012–20f
      • Table New Zealand: debit cards in circulation (millions), 2012–20f
      • Table New Zealand: debit card transaction volumes, 2012–20f
      • Table New Zealand: debit card transaction values (NZD), 2012–20f
      • Table New Zealand: debit card transaction values ($), 2012–20f
      • Table New Zealand: debit cards in circulation by scheme (000s), 2012–16e
      • Table New Zealand: debit card transaction values by scheme (NZDbn), 2012–16e
      • Table New Zealand: debit card transaction values by scheme ($bn), 2012–16
      • Table New Zealand: debit card transaction values by issuer (NZDbn), 2012–16e
      • Table New Zealand: debit card transaction values by issuer ($bn), 2012–16e
      • Table New Zealand: pay-later cards in circulation (millions), 2012–20f
      • Table New Zealand: pay-later card transaction volumes, 2012–20f
      • Table New Zealand: pay-later card transaction values (NZD), 2012–20f
      • Table New Zealand: pay-later card transaction values ($), 2012–20f
      • Table New Zealand: pay-later cards in circulation by scheme (000s), 2012–16e
      • Table New Zealand: pay-later card transaction values by scheme (NZDm), 2012–16e
      • Table New Zealand: pay-later card transaction values by scheme ($m), 2012–16e
      • Table New Zealand: pay-later card transaction values by issuer (NZDbn), 2012–16e
      • Table New Zealand: pay-later card transaction values by issuer ($bn), 2012–16e
      • Table New Zealand: credit cards in circulation (millions), 2012–20f
      • Table New Zealand: credit card transaction volumes, 2012–20f
      • Table New Zealand: credit card transaction values (NZD), 2012–20f
      • Table New Zealand: credit card transaction values ($), 2012–20f
      • Table New Zealand: credit cards in circulation by scheme (000s), 2012–16e
      • Table New Zealand: credit card transaction values by scheme (NZDm), 2012–16e
      • Table New Zealand: credit card transaction values by scheme ($m), 2012–16e
      • Table New Zealand: charge cards in circulation (000s), 2012–20f
      • Table New Zealand: charge card transaction volumes, 2012–20f
      • Table New Zealand: charge card transaction values (NZD), 2012–20f
      • Table New Zealand: charge card transaction values ($), 2012–20f
      • Table New Zealand: charge cards in circulation by scheme (000s), 2012–16e
      • Table New Zealand: charge card transaction values by scheme (NZDm), 2012–16
      • Table New Zealand: charge card transaction values by scheme ($m), 2012–16e
    • Definitions
      • Table Key definitions
    • Methodology
    • Bibliography
    • Furtherreading

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