Two South Island regions recorded the highest growth rates through the Paymark network in December.

Otago took the lead with an 8.5 per cent increase on December 2013, with Nelson following closely behind, up by 8.2 per cent.

Spending in Otago totalled $294 million compared to $271 million in 2013, bringing in an extra $23 million for the local economy. Nelson’s economy received a boost of $9 million with shoppers ringing up $112 million compared to $103 million in December 2013.

A total of $5.3 billion was spent via Paymark’s network during the busiest month of the year, up $300 million on December 2013, showing 5.4 per cent growth.

In 2014, Paymark recorded the highest growth rate in spending since 2007, processing transactions with a value of $52.3 billion, up 6.6 per cent on the previous year.

Paymark’s head of customer relations, Mark Spicer, says the national growth is strong, given that low fuel prices will be having some impact.

“The strong growth in Otago and Nelson could reflect a combination of factors,” says Spicer.

“Both regions are home to popular tourism hotspots attracting both domestic and international visitors. Additionally, we’ve seen strong and consistent growth in the hospitality sectors throughout 2014.”

The value of transactions for 2014 was up by 11.6 per cent in the accommodation sector and 11.2 per cent in the food and beverage sector which includes cafes, restaurants, and bars compared to 2013.

“With a strong year for tourism in these areas, plus Christmas spending, both Otago and Nelson are likely reaping the benefits of this combination.”

Other regions strong in December were Auckland/Northland and the Bay of Plenty, with a 5.9 per cent increase in spending for both. Total spending for these regions was $2.1 billion and $358 million respectively.

Key statistics for December 2014:

• Christmas Eve 2014 was Paymark’s biggest day on record with $263.5 million processed through the network − up by an unprecedented 10.5 per cent on 2013.
• The hardware, building and garden supplies sector was up by 13.7 per cent on December 2013.
• Spending on accommodation was up 11.8 per cent.
• Food and beverage services (excluding supermarkets) including cafes, restaurants, and bars showed 10 per cent growth.
• Supermarket and grocery stores were also strong, with spending up by 10.6 per cent on December 2013.
• Furniture, flooring, and homewares stores were up by 6.7 per cent.
• Spending was slower at department stores at 1.8 per cent; clothing, footwear, and personal accessories, 1.6 per cent; and in electronic goods, 0.5 per cent.

Paymark also recorded its 13 billionth transaction on December 27 in Taupo. Its 12 billionth transaction was recorded on January 31, 2014 − only 11 months beforehand. Spicer said achieving this milestone in less than 11 months may reflect the growth in contactless transactions over the past year.