Payment cards dominate NZ market with 57% share in 2023

It was driven by the country's technological infrastructure, ensuring fast internet and secure payments.

Payment cards emerged as the top choice for online transactions in New Zealand in 2023, accounting for a 57% share, according to GlobalData.

The country's e-commerce market witnessed a 14% growth, hitting $7.6b (NZD12.3b)

Projections also suggest further expansion, with the market expected to reach $8.5b (NZD13.8b) by 2024.

“The e-commerce market is well developed, supported by the country’s robust technology infrastructure, which ensures the availability of high-speed internet,” said Kartik Challa, Senior Banking and Payments Analyst at GlobalData.

“In addition, the availability of secure online payment systems, expansion of logistics services, and the increasing number of online shoppers all supported e-commerce growth,” he added.

Additionally, promotional events like Black Friday and Cyber Monday have fueled consumer spending.

As per GlobalData's 2023 Financial Services Consumer Survey, about 86% of respondents in New Zealand engaged in online shopping over the past six months. Only 4.3% reported abstaining from online purchases entirely.

Whilst payment cards maintain their stronghold in the e-commerce realm, alternative payment methods are also gaining traction, collectively accounting for 23.2% of transactions.

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Brands such as Afterpay, Apple Pay, and PayPal are amongst the favoured choices for online payments.

Additionally, bank transfers remain a viable option, with banks offering seamless online banking services and swift fund transfers.

However, cash transactions represent a minimal 3% share.

Looking ahead, Challa anticipates sustained growth in New Zealand's e-commerce market, projecting it to reach $12.4b (NZD20.2b) by 2028, with a compound annual growth rate of 7.6% expected between 2024 and 2028.