Kiwi Shoppers Swap Cash for Cards - A third of New Zealanders would like to eliminate cash altogether

The majority of New Zealanders now carry less cash in their wallets than they did a decade ago and a third would be happy to eliminate cash altogether, according to the 2011 Visa Debit Savvy Shopper Survey[1].

Of those surveyed, 62 percent carry only $20 or less and five percent do not carry any cash at all. At the same time, more than a third of New Zealanders are carrying more payment cards than they did 10 years ago – three or more.

These findings come from a nationwide survey of consumer spending patterns designed to examine new trends, views and behaviours in relation to payment preference, online shopping and overseas shopping.

Sean Preston, Visa’s New Zealand Country Manager, said the study confirmed New Zealand spending patterns are changing, with a growing preference for using cards and high levels of consumer interest in contactless payment technology.

“Payment methods are evolving with innovation such as Visa payWave – our contactless technology offering, providing consumers with more choice, more convenience and an improved purchasing experience. This latest survey shows that New Zealanders are ready to embrace new ways to pay and this will have clear implications on the way New Zealand retailers do business in the future,” says Mr Preston.

The research shows that two thirds of Kiwis favour credit cards for payment, however debit cards are steadily increasing in popularity with 40 percent of New Zealanders now carrying a debit card. Cardholders cite the ability to use debit cards online whilst accessing their own money as the main reason for choosing one. The strength of the New Zealand dollar has also led to more debit card use. Higher numbers of Kiwis are spending their dollars offshore, with more than a quarter of shoppers choosing to take advantage of the exchange rate and shop online at overseas stores.

“Our research shows that changing financial times have led most New Zealanders to reassess their shopping behaviour. Kiwis are trying to make their dollars go further and are spending more time price checking online to ensure they get the best deal. Visa debit cards are proving increasingly popular because they provide online shoppers with the convenience and acceptance they associate with their Visa credit card, along with the ability to pay for goods using their own money,” adds Mr Preston.

Additional findings include:

• Changing financial circumstances have meant the majority of New Zealanders have adapted their buying behaviour (83%)

• Most have done this by cutting down on purchasing nice-to-haves and only buying must-haves (62%). Almost half shop around more (48%), buy home brands (44%), or use their own money rather than credit or finance (38%)