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New Zealand is becoming more and more a digital nation and Kiwis expect transactions to be seamless and painless, FintechNZ general manager James Brown says.
Fintech is the fastest growing part of the tech sector, with new contactless payment about to make a dramatic change to transactions in New Zealand, he says.
A recent Reserve Bank survey of the public’s cash use found nearly nine in every 10 New Zealanders prefer to pay for things without using cash.
“The buy now, pay later debit card solutions have gained huge momentum in New Zealand,” Brown says.
“Some perceive this as just another form of credit and will put New Zealanders into more debt. But this is simply not true. More than 800,000 Kiwis now use some form of BNPL method because it is seamless and simple to use.
“The main method is by debit card and just typically spreads the payment over six weeks at an average of $160 so there is a very short-term issue, according to John O’Sullivan, chief executive of Partpay.
“We have seen this being mainly used by women, however, as it becomes more popular and people understand the product, they are adopting it as the main means of payment, which is a great example of fintech positively impacting the New Zealand consumer.
“Banks and other credit providers will be looking at this new BNPL very closely and I believe will make the right decision when it comes to consumer expectations with that in mind. We will see a reduction in the charges around certain types of payments because their customers will have more choice now than ever before.
“Small businesses must realise while payWave does have a cost, statistics show it generates more foot traffic therefore more sales. FintechNZ is encouraging businesses to adopt faster transactions for their customers.”
The overall technology sector is the third biggest industry in New Zealand. The annual TIN200 report just released says fintech is still the fastest growing part of the tech sector and whole tech industry will outstrip the dairy sector for exports in five years.