High growth in e-commerce sales projected by 2025
New Zealand’s e-commerce market is projected to reach $12.4 billion by 2025, increasing 38 per cent as consumers prefer alternative payment methods, according to a report by FIS.
Buy now, pay later (BNPL) is the fastest-growing online payment method accounting for 10 per cent of e-commerce transaction value last year. The payment method is estimated to represent 17 per cent of New Zealand’s e-commerce transaction value by 2025, marking the highest share in Asia-Pacific.
Meanwhile, credit/charge cards account for 34 per cent of e-commerce transaction value last year, followed by digital wallets (20 per cent), and debit cards (16 per cent). Credit/charge cards are projected to remain its leading position in 2025 with a 30 per cent 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.