Payment cards are the preferred payment method for e-commerce purchases in New Zealand, accounting for 57% share in 2023, reveals GlobalData, publishers of EPI.
GlobalData E-Commerce Analytics tool
GlobalData’s E-Commerce Analytics tool reveals that e-commerce market in New Zealand grew by 14% in 2023 to reach NZD12.3bn ($7.6bn), as increasing number of consumers shift from offline to online purchases. The e-commerce market is estimated to grow by 12.1% to reach NZD13.8bn ($8.5bn) in 2024.
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Kartik Challa, Senior Banking and Payments Analyst at GlobalData, said: “The e-commerce market is well developed, supported by the country’s robust technology infrastructure, which ensures the availability of high-speed internet. 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.”
Additionally, attractive offers during key online shopping events such as Black Friday, Singles’ Day, Click Frenzy, and Cyber Monday have contributed significantly to the e-commerce growth.
Meanwhile, the presence of secure payment solutions, such as Mastercard Identity Check, and faster checkout options such as Click to Pay and PayPal One Touch have encouraged consumers to shop online.
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By GlobalDataGlobalData 2023 Financial Services Consumer Survey
GlobalData’s 2023 Financial Services Consumer Survey reveals that around 86% of consumers in New Zealand reported having shopped online in the past six months, while only 4.3% of respondents cited that they never shopped online.
Among the various tools used for e-commerce purchases, payment cards are the most preferred, demonstrating a strong attachment to this traditional payment method. They collectively account for 57% share in 2023 with credit and charge cards alone accounting for 36.6% share. Card usage is driven by benefits such as reward points, cashback, discounts at partner merchants, and the availability of instalment payment facilities.
While payment cards continue to dominate, alternative payment solutions are also increasingly being used for online purchases, collectively accounting for 23.2% share, with some of the popular brands being Afterpay Apple Pay, and PayPal.
Meanwhile, bank transfers are also used for e-commerce payments, with most banks providing online banking services as well as the ability to transfer funds quickly and securely, making it simple for consumers to use this payment method. Cash accounted for a share of just 3%, reflecting the strong use of electronic payment methods in the country.
Challa added: “New Zealand’s e-commerce market has shown consistent growth and is expected to reach NZD20.2bn by 2028, at an anticipated compound annual growth rate of 7.6% between 2024-2028. Evolving authentication measures that offer enhanced security and faster checkout options will further boost consumer confidence and encourage online payments.”
