New Zealand lags in adopting new payment methods: Report
New Zealand consumers lag behind the rest of the world in e-wallet payment adoption, with Kiwis still preferring to use traditional credit cards online, according to new research from FIS and Worldpay.
Only 16 per cent of online purchases in 2018 were made through an e-wallet, compared to the global average of 37 per cent, while only 2 per cent of in-store purchases utilised the technology compared to 12 per cent globally.
40 per cent of e-commerce purchases were made using credit cards, as well as 45 per cent of in-store purchases.
“In order for retailers and merchants in New Zealand to succeed in the increasingly e-commerce landscape, they need to understand local consumer preferences and offer the right mix of payment methods to meet their expectations,” FIS general manager for APAC Phil Pomford said.
“It’s not about offering every available option, but rather focusing on those that best suit your business model and which match the needs of your customers.”
While mobile commerce is growing fastest globally, even here New Zealand lags behind, with only 36 per cent uptake compared to 81 per cent in China, 60 per cent in Singapore, 54 per cent in the UK and 50 per cent in Italy. Australia fared even worse, with only 31 per cent of e-commerce spend in 2018 being made through mobile channels.
However, New Zealand’s e-commerce industry is predicted to grow by more than 11 per cent, and will be worth US$3 billion by 2022, according to the report.
“The world is seeing a diversification of payment solutions and technologies that transcend demographic, geographic and generational boundaries,” Pomford said.
“It is imperative for New Zealand retailers to adapt to the changing expectations and various ways people want to pay if they are there to entice the modern consumer.”
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