As consumers continue to prefer alternative payment methods, New Zealand’s e-commerce market is projected to reach $12.4 billion by 2025, increasing 38 percent, according to a report by FIS.
Buy now, pay later (BNPL) is the fastest-growing online payment method accounting for 10 percent of e-commerce transaction value last year. The payment method is estimated to represent 17 percent of New Zealand’s e-commerce transaction value by 2025, marking the highest share in Asia-Pacific.
Meanwhile, credit/charge cards account for 34 percent of e-commerce transaction value last year, followed by digital wallets (20 percent), and debit cards (16 percent). Credit/charge cards are projected to remain its leading position in 2025 with a 30 percent share of the transaction value.
Credit/charge cards are expected to comprise 36 per cent of POS transaction value by 2025, followed by BNPL (6 per cent). Growing at 21 per cent CAGR through 2025, mobile wallets are the fastest-growing in-store payment method.
Cash payment will continue to decline and be set to comprise 10 per cent of POS transaction value by 2025.