New Zealand’s payment landscape is highly developed, integrating advanced technologies and diverse payment options to cater to both consumers and businesses. From widely adopted card payments and efficient bank transfers to the growing popularity of Buy Now, Pay Later (BNPL) services and digital wallets, New Zealand showcases a dynamic and innovative financial ecosystem. This comprehensive overview highlights the key methods of payment in New Zealand, emphasizing the local actors and technologies driving these advancements.
Payment by Card in New Zealand
New Zealand’s online card payment landscape is advanced and widely adopted. The country has a high card penetration rate, supported by governmental and institutional efforts​.
The annual value of card transactions has exceeded NZ$100 billion in 2023, growing steadily​​. Debit cards, issued by local banks like ANZ, ASB, and Westpac, are commonly used for everyday transactions. These cards are part of the EFTPOS system, which enables direct debits from bank accounts at the point of sale. Credit cards are also popular due to rewards and protections, accounting for 53.7% of total card payments​.
Security is crucial for online transactions, with EMV chip technology and two-factor authentication widely used. Legislation capping interchange fees encourages merchant acceptance and lowers transaction costs​​.
Overall, New Zealand’s online card payment system is secure, innovative, and a key part of the digital economy​
Payment by bank transfer in New Zealand
In New Zealand, bank transfers are a reliable and efficient payment method, widely used for personal and business transactions. Major banks like ANZ, ASB, Westpac, and BNZ support seamless and secure fund transfers.
Domestic transfers are often processed instantly through real-time payment systems, while international transfers use the SWIFT system. Instant payment services integrated into online and mobile banking platforms provide 24/7 access, enhancing convenience.
A significant player is Click, a real-time payments system by Paymark, acquired by Worldline in 2018. Click facilitates instant transactions, improving the speed and efficiency of bank transfers. Payments NZ is also enhancing the country’s payment infrastructure.
Additionally, Online EFTPOS by Worldline, originally introduced by Paymark, remains a popular choice. This service allows customers to make secure online payments directly from their bank accounts via their mobile banking apps, without the need to expose their banking credentials.
Both Click and Online EFTPOS provide robust solutions for seamless and efficient transactions, supporting New Zealand’s advanced digital payment landscape.
Local fintech startups like Windcave contribute to New Zealand’s advanced digital payment landscape.
Local actors : Click (Paymark – Worldline), account2account (Windcave), Online EFTPOS
Payment by BNPL in New Zealand
In New Zealand, Buy Now, Pay Later (BNPL) has rapidly become a popular payment method. This trend is especially strong among younger consumers who seek flexible, interest-free installment payments.
One prominent local BNPL provider is Laybuy. Laybuy is headquartered in Auckland and was founded by Gary Rohloff and his family. It offers a seamless payment experience, allowing consumers to split their purchases into six weekly, interest-free installments. Laybuy’s success in New Zealand and its expansion into international markets highlight the robust demand for BNPL services.
Another local player was Genoapay, which offered similar services, allowing consumers to pay for their purchases over ten weekly installments. Genoapay had been integrated into various retail and online platforms, making it accessible to a wide range of consumers. However, Genoapay has recently been closed, as per the latest update from Gem Finance.
The BNPL market in New Zealand continues to expand, driven by consumer demand for flexible payment options and increased merchant adoption. Retailers find that offering BNPL options can lead to higher average order values and improved customer satisfaction.
The New Zealand government and regulatory bodies are also actively monitoring the BNPL sector to ensure consumer protection and financial stability. Recent consultations by the Ministry of Business, Innovation, and Employment (MBIE) highlight the focus on understanding the benefits and potential risks associated with BNPL services, such as financial hardship and debt accumulation.
Local actors : Laybuy
Payment by digital wallet and X-Pay in New Zealand
Digital wallets are gaining popularity in New Zealand, offering convenient and secure payment options. A prominent player in this space is Dosh, co-founded by James McEniery and Shane Marsh. After using digital wallets extensively in Singapore, they introduced Dosh to New Zealand. Dosh allows instant payments via mobile numbers or QR codes, eliminating delays typical of traditional bank transfers. Users can load money into their Dosh wallet from their bank accounts and use it for various transactions. The app also features integration with Visa, enabling payments at any location that accepts Visa​.
Dosh has become New Zealand’s first locally-owned digital wallet, gaining significant traction among younger users. It offers features like peer-to-peer payments, bill splitting, and seamless integration with Visa for broader usability​.​​
Other potential competitors like Buck and Choice are no longer operational. Buck aimed to simplify bank transfers but never fully launched, while Choice, which supported QR code payments and charitable donations, has also ceased operations​.
Local actors : Dosh
Payment methods in New Zealand interesting you?
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