Growing shift in payment methods for Kiwi consumers

A new global report from Xero has revealed a shift in how Kiwi consumers are making payments and the barriers for small businesses in adapting.

The report ‘I want to pay that way’ surveyed over 6,000 adults aged 18 and over and more than 2,500 small business leaders across the United States, United Kingdom, Australia, New Zealand and Singapore.

It examined consumer payment habits, the types of payment methods small businesses use and offer, and attitudes towards future and emerging payment trends.

The findings highlight a global trend for small businesses reporting expensive fees (33%) and security concerns (30%) as the top barriers that prevent them from offering their customers new or different payment methods.

In New Zealand, the report says that a quarter of consumers now use Apple Pay or Google Pay to make payments, with younger generations leading the way. It’s the first choice for 48% of Gen Z consumers, compared with 28% of millennials, 17% of Gen X and 11% of Baby Boomers.

However, only 17% of small New Zealand businesses offer Apple Pay and/or Google Pay to their customers.

Cash is one of the least used methods with only 8% of Kiwis having cash readily on them to pay in store.

Bridget Snelling, Aotearoa New Zealand Country Manager at Xero, says it’s essential for Kiwi small businesses to consider digitalisation options when it comes to customer payment methods.

“Aotearoa New Zealand has a long history of embracing innovative payment solutions, starting with the introduction of EFTPOS, which made us an early leader in digital payments. As technology continues to evolve and convenience remains king, it’s important we continue to progress in this direction.”

The report also showed that just one-third (39%) of Kiwi small businesses had adopted a new payment method in the last 6 - 12 months, while 87% of Kiwi small business owners say there is a barrier preventing them from offering new/different payment methods to their customers.

Expensive fees limited almost one-third (32%) of Kiwi small businesses from embracing new payment methods, while a quarter either see no clear advantages (28%) or believe it’s too complex/time-consuming to set up (26%).

W: Find the full report here.