FintechNZ is urging businesses to adopt faster transactions for their customers as New Zealand is becoming more and more of a digital nation and Kiwis expect seamless and painless transactions.
James Brown, general manager at FintechNZ, said that financial technology (fintech) is now the fastest growing part of the technology sector – with the Reserve Bank of New Zealand (RBNZ)’s survey revealing that nearly nine in every 10 Kiwis prefer to pay without using cash.
“The buy now, pay later debit card solutions have gained huge momentum in New Zealand. 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,” Brown said.
Read more: NZ facing fintech disruption this year
John O’Sullivan, chief executive of Partpay, said customers usually use debit cards to pay.
“The main method is by debit card and it just typically spreads the payment over six weeks at an average of $160 so there is a very short-term issue,” he said. “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.
He believes that banks and credit providers will look more into the new Book Now Pay Later (BNPL) scheme and “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,” he continued. “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.”
