New Zealand's credit and charge card payments market to reach $39.6b by 2028
This is thanks to the consumer shift towards electronic payments.
The New Zealand credit and charge card payments market is projected to record a compound annual growth rate of 4.4% from 2024 to 2028, with a market value projected to reach $39.6b by 2028, according to GlobalData.
This growth is underpinned by a consumer shift towards electronic payments, reflecting the increasing digitization of the payment ecosystem.
In 2022, New Zealand's credit and charge card payment value grew by 10.7% due to heightened consumer spending, followed by a further 5.5% increase to $32.8b in 2023.
Ravi Sharma, GlobalData's lead banking and payments analyst, noted that New Zealand's 100% banked adult population and a mature card market, coupled with the expansion of point-of-sale infrastructure, are key factors driving digitalization.
New Zealanders are avid users of credit and charge cards, with a high frequency of 312.4 transactions per card in 2023. Whilst these cards account for a limited proportion of cards in circulation, they account for 52.2% share in value for 2024, largely due to value-added offerings such as reward points, purchase discounts, and waived annual fees.
Payments NZ is further pushing digitalisation through its Payments Modernisation Plan 2030, which includes initiatives to promote credit and charge card use, improve financial inclusion, and foster competition and innovation in the payments sector.
Credit and charge cards are a preferred payment method for online shopping, accounting for 36.6% of total e-commerce transaction value in 2023, thanks to their convenience, security, and added benefits.
With the growth of contactless payments and e-commerce, total payments via credit and charge cards are expected to grow by 1.5% to reach $33.3b in 2028, GlobalData said.
Despite the growth trajectory, challenges like inflationary pressures and geopolitical uncertainties remain, according to Sharma.
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