New Zealand’s card payments market is on track to exceed NZ$122.3 billion (US$75.1 billion) by 2028, according to forecasts from GlobalData. This expected growth is driven by a compound annual growth rate (CAGR) of 4.1% and indicates the country’s ongoing shift toward electronic and contactless payments.
The transition to these payment types is supported by efforts from both the government and commercial banks to improve financial inclusion and increase the use of debit cards.
The increased use of card payments in New Zealand extends beyond traditional transactions at brick-and-mortar shops, playing a key role in the country’s growing e-commerce sector. Online entertainment, including the online casino industry, has become a key area where card payments are frequently used. Consumers seeking instant deposits and payouts from online platforms now get to enjoy faster and more secure payment methods. For example, New Zealand’s best quick payout casinos offer a seamless experience for players who rely on debit or credit cards for instant deposits and withdrawals.
Lead Banking and Payments Payments Analyst at Global Data, Ravi Sharma, explained: “New Zealand is gradually moving towards the digitalisation of its payment infrastructure.” And it is not just the online entertainment industry that is embracing card payments; this type of payment is increasing across sectors thanks to several factors.
This shift is supported by a highly banked adult population and a mature payment ecosystem, which includes extensive point of sale (POS) infrastructure and the adoption of contactless payment options at most establishments.
In 2022 and 2023, New Zealand’s card payment value grew by 6.6% and 6.1% respectively, according to GlobalData’s Card Payments Analytics. The e-commerce sector particularly fueled the rise as more consumers turned to digital platforms for various services, from shopping to entertainment and travel.
The government has implemented several initiatives to encourage the shift to card payments. By offering low-cost bank accounts and reducing merchant interchange fees, the way has been paved for increased bank card penetration.
In 2024, debit cards are projected to contribute 47.8% to the total card payments market, while credit cards will make up 52.2% of that total. The larger portion of credit payments are due to reward programs offered by banks, discounted credit card purchases, and annual fee waivers.
EFTPOS NZ, the country’s leading payments infrastructure provider, plays a key role in the expansion of card payments. With over 60,000 businesses and more than 90,000 devices connected to EFTPOS NZ’s network, the institution has been instrumental in driving card payment acceptance across the country.
New Zealand’s Payments Modernisation Plan 2030 aims to reduce dependence on cash further, improve financial inclusion and enhance competition in the payments sector. The Plan’s vision is “to ensure New Zealand has the world’s most progressive payments system while making sure payments are simple and secure for Kiwis.”
Although GlobalData’s forecast for card payments is optimistic, there are also potential challenges in the near future. High inflation rates and global geopolitical uncertainties could pose risks to the sustained growth of the payments market. However, the country’s commitment to developing advanced payment technologies - like novel POS systems and self-checkout stores - ensures that New Zealand remains a leader in digital payment innovation.