The credit and charge card payments market in New Zealand is projected to grow at a compound annual growth rate (CAGR) of 4.4% from 2024 to 2028, according to a report by GlobalData. By 2028, the market is expected to reach a value of $39.6 billion, reflecting the country’s ongoing shift toward digital payments and financial innovation.
A Boom in Digital Payments
The increase in credit and charge card usage in New Zealand reflects broader trends in the global payments ecosystem, where digitalisation continues to gain traction. In 2022, the payment value for these cards rose by an impressive 10.7%, driven by a surge in consumer spending post-pandemic. This momentum carried forward into 2023, with a 5.5% growth, bringing the market to $32.8 billion.
Ravi Sharma, lead banking and payments analyst at GlobalData, highlighted several factors propelling this growth. “New Zealand’s 100% banked adult population and the maturity of its card market, along with expanding point-of-sale infrastructure, are key enablers of digitalisation,” Sharma said.
Credit Cards Lead the Way in Spending
New Zealanders are heavy users of credit and charge cards, with an average of 312.4 transactions per card recorded in 2023. These cards, while making up a smaller share of total cards in circulation, accounted for 52.2% of the market value in 2024. The popularity stems from value-added features such as reward programs, discounts, and waived annual fees, making them an attractive choice for consumers.
Digital shopping habits have also bolstered the market. Credit and charge cards accounted for 36.6% of the total e-commerce transaction value in 2023, further cementing their role as a preferred payment method. The convenience and security offered by these cards, alongside their additional benefits, are key drivers of this trend.
Payments Modernisation Plan 2030: A Catalyst for Growth
Payments NZ is spearheading efforts to modernise the nation’s payments landscape through its ambitious Payments Modernisation Plan 2030. This initiative focuses on promoting the use of credit and charge cards, improving financial inclusion, and fostering innovation and competition in the payments sector.
The plan is expected to accelerate the adoption of contactless payments and expand the role of credit cards in the digital economy. These efforts align with the broader trend of increasing card-based transactions across retail and online platforms.
E-Commerce and Contactless Payments Drive Growth
As New Zealand embraces e-commerce and contactless payment solutions, the total value of credit and charge card payments is anticipated to grow by 1.5% annually, reaching $33.3 billion by 2028. The rise of contactless technology, coupled with a preference for seamless online transactions, underscores the significance of these cards in the evolving payment ecosystem.
Moreover, the continued expansion of secure digital payment options further supports this upward trajectory. Retailers and consumers alike are increasingly prioritising convenience and safety, creating an environment conducive to growth in the credit card market.
Inflation and Geopolitical Concerns Pose Challenges
Despite the optimistic outlook, challenges such as inflationary pressures and geopolitical uncertainties loom large. Rising costs of living may influence consumer spending patterns, potentially impacting the growth of credit and charge card transactions. Sharma noted these factors as potential hurdles but remains optimistic about the market’s ability to adapt and thrive.
A Future Built on Innovation and Inclusion
The ongoing transformation of New Zealand’s payments landscape highlights the importance of innovation and inclusivity. By focusing on modernising infrastructure and addressing emerging challenges, stakeholders are setting the stage for sustained growth in the credit and charge card market.
