Global Data released forecast for New Zealand payment market

The payments sector is expected to recover gradually by the end of Q2 2020

cash payments in New Zealand

Global Data released forecast for New Zealand payment market. Source: pixabay.com

Cash payments in New Zealand are set to face the decrease over the next four years as COVID-19 pandemic causes growing concerns, according to GlobalData.

The report found that the number of ATM cash withdrawals will decline by a compound annual growth rate (CAGR) of -4.8% by 2023. At the same time, card payments at POS will rise at a CAGR of 2.2% during the same period.

While card transaction continues to grow at the cost of cash, the growth is likely to be slower because of the overall decrease in consumer spending. Payments companies will lose out on significant business from sectors such as travel and tourism, accommodation and retail which have been hit the hardest due to the lockdown to control COVID-19 outbreak
Ravi Sharma, Lead Banking and Payments Analyst at GlobalData

According to the statement, consumers are shifting from in-store to online purchases in order to avoid exposing themselves to disease vectors such as cash and POS terminals.

Besides, they are choosing online purchases since local stores are running out of stock due to delayed shipments. This way, they can stockpile items and avoid busy public places at the same time.

We’ve reported that the cash share in the overall payment transaction volume in Japan is set to drop in 5 years, since banknotes can transfer coronavirus.

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