April 01, 2013
SAVVY KIWIS MOVE AWAY FROM USING CASH
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AUCKLAND – 1 April, 2013 – Kiwis are continuing to move away from cash towards using debit and credit cards or internet banking, according to MasterCard’s Survey on Consumer Purchasing Priorities released today.
When asked about their top three types of payment, cash registers last in thirteen out of the nineteen categories examined, while credit cards came in on top or followed in close second in all bar three categories.
The survey found that Debit cards were the most common choice for everyday expenses such as groceries (42%), dining out (41%), and personal care goods (38%) and services (33%). However, when it comes to retail shopping (43%) and the purchase of household goods (42%), most Kiwis prefer to use their credit card, while internet banking is the preferred choice for mortgage/rent (58%) and utilities payments (46%).
“The way Kiwis are paying is changing as consumers move away from having cash in their wallets, increasingly towards using debit and credit cards for over-the-counter purchases. Although cash is still popular when it comes to purchasing small ticket items, such as public transportation, most people are choosing to use some form of electronic payment option for all other purchases or expenditure,” said MasterCard New Zealand Country Manager, Albert Naffah.
“The days of carrying cash are numbered and it’s clear that New Zealand is moving steadily towards becoming a cashless society. We already know that Kiwis lead the world in the adoptions of electronic payment solutions with a strong willingness and readiness among consumers to adopt mobile payment methods. Electronic payment means consumers can keep a much closer watch on how and where they spend their money, and as savvy money managers, the ability to track their spending appeals to Kiwis.
“Although we don’t expect cash to ever fully disappear, as safe, new and convenient forms of payment, like ‘tap-and-go’ PayPass and MasterPass digital wallet technology become more widely available, we expect this will only serve to decrease the need to use cash for everyday purchases.
“Locally, we’ve seen the desire to pay by card helping drive demand for businesses to offer contactless payment technology. With many of New Zealand’s most popular retailers now allowing customers to ‘tap-and-go’, and with digital wallet technology expected to be available locally in the future, we’re at a real tipping point when it comes to contactless technology adoption.”
New Zealand retailers including Bunnings, Kmart, The Warehouse, Resene, Repco, BP and Countdown are already offering consumers the options to ‘tap-and-go’ on payments under $80. Organisations including Air New Zealand, ASB, ANZ, BNZ, Kiwibank, Westpac and The Warehouse Financial Services have also recognised the benefits of PayPass and are issuing MasterCard PayPass-enabled cards.
The MasterCard Worldwide Survey on Consumer Purchasing Priorities provides valuable insights into consumers’ savings and expenditure behaviour and their discretionary spending priorities. In particular, the series covers Consumer Purchasing Priorities including Travel, Dining & Entertainment, Education, Money Management, Luxury and General Shopping. The 500 respondents are New Zealand residents between 18-64 years old owning a bank account and who access the internet at least once a week.
The results of this survey do not represent the financial performance of MasterCard.
The MasterCard Worldwide Index suite in Asia/Pacific, Middle East and Africa includes the long-running MasterCard Worldwide Index of Consumer Confidence, as well as the MasterCard Worldwide Index of Women’s Advancement, Online Shopping, Index of Financial Literacy, and the Index of Global Destination Cities. In addition to the Indices, MasterCard’s research properties also include a range of consumer surveys including Ethical Spending and a series on Consumer Purchasing Priorities (covering Travel, Dining & Entertainment, Education, Money Management, Luxury and General Shopping).
MasterCard also regularly releases Insights reports providing analysis of business dynamics, financial policies and regulatory activities in the Asia/Pacific, Middle East and Africa region. Over 80 Insights reports have been produced since 2004.
MasterCard has also released a series of four books on Asian consumer insights, authored by Dr. Yuwa Hedrick-Wong, Global Economic Advisor for MasterCard Worldwide and published by John Wiley & Sons.
MasterCard (NYSE: MA), www.mastercard.com, is a technology company in the global payments industry. We operate the world’s fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. MasterCard’s products and solutions make everyday commerce activities – such as shopping, traveling, running a business and managing finances – easier, more secure and more efficient for everyone. Follow us on Twitter @MasterCardNews, join the discussion on the Cashless Conversations Blog and subscribe for the latest news.