Introduction

Payment Cards in New Zealand is an invaluable guide to one of the world's most established payment card markets. Created using a combination of secondary and primary research, this report provides statistics on market size, market shares and card acceptance. It provides an overview of regulation, competitor activities and product innovation. It concludes with market forecasts and a SWOT analysis.

Scope

The focus of the report is consumer payment cards, as opposed to commercial products. Data and analysis provided on debit cards, credit cards and deferred debit and charge cards. The report parameters extend to issuance only. Merchant acquiring and card processing are not covered. Historic market data is presented from 2002 to 2006, with forecast data presented to 2011. Competitor market shares are presented for 2006.

Highlights

New Zealand has an excellent POS network. The total number of terminals reached 125,008 in 2006. Its ATM coverage, however, is not as strong with penetration levels at 1,756 people per terminal, which is someway off the 823 people per terminal seen in Australia. Regulatory scrutiny of New Zealand's payment card market is increasing. The Commerce has begun an investigation into interchange fees on MasterCard and Visa products and it is thought that it may also turn its attentions to late payment charges. Debit cards account for around two thirds of all cards in issue and total payment card spend. Even more strikingly, debit cards account for a staggering 84 per cent of the total number of transactions and frequency of use per card stands at an exceptional 191 transactions per card.

Reasons to Purchase

Learn how the consumer payment card market in New Zealand has developed over the last five years. Understand recent developments in the market in terms of consolidation, new entrants and product innovations. Find out Datamonitor's opinion on the future outlook for the market, looking specifically at debit, credit, deferred debit and charge.

Overview 1
Catalyst 1
Summary 1
Executive Summary 2
Market context 2
Competitor and product overview 2
Forecasting the payment card market in New Zealand 3
Table of Contents 3
Table of figures 4
Table of tables 5
Introduction 6
What is this report about? 6
Scope of the report 6
Structure of the report 6
Market context 7
Introduction 7
Country overview 8
Demographics 9
Economy 10
GDP 10
Inflation 13
Distribution of income (Gini Co-efficient) 14
Market size 15
Cards in issue 15
Number of transactions 16
Frequency of use 17
Value of transactions 18
Average transaction values 19
Balances outstanding 20
Card acceptance 22
ATM statistics 22
POS statistics 23
Market structure 24
Banks 24
Building societies 24
Credit Unions and Friendly Societies 25
Regulatory environment 25
Industry regulators 25
Reserve Bank of New Zealand 25
Industry associations 25
New Zealand Bankers' Association (NZBA) 25
Financial Services Federation 26
New Zealand Association of Credit Unions (NZACU) 26
Credit bureaux 26
Key issues 26
Late payment fees 26
Foreign exchange fees 27
Interchange fees 27
Competitor and product overview 28
Introduction 28
Card scheme market shares 28
Debit cards 28
Charge cards 28
Cards in issue 28
Value of transactions 29
Credit cards 30
Cards in issue 30
Value of transactions 31
Card issuer market shares 32
Debit cards 32
Cards in issue 32
Credit cards 33
Cards in issue 33
Balances outstanding 34
Competitor developments 36
Foreign ownership 36
Consolidation and market exit 36
New entrants 36
Product analysis 37
Credit card design 37
Loyalty programs 39
Product innovation 40
Prepaid cards 41
NZ Post introduces prepaid card 41
forecasting the payment card market in New Zealand 42
Introduction 42
Forecasting the debit card market 42
Forecasting the credit card market 43
Forecasting the charge card market 45
SWOT analysis 47
Strengths 47
Weaknesses 47
Opportunities 47
Threats 47
APPENDIX 49
Supplementary data 49
Market Context 49
Definitions 51
ATM-only card 51
Co-branded card 51
Credit card 51
Debit card 51
ePurse 51
EFTPOS 52
POS terminal 52
Prepaid card 52
A card that cardholders can load up and then only spend the amount that is loaded on the card. Some prepaid cards can be reloaded, while others can be used once only. There are different types of prepaid card, ranging from ePurses to gift cards to travel cards. 52
Methodology 52
Further reading 52
Ask the analyst 54
Datamonitor consulting 54
Disclaimer 54
List of Tables
Table 1: GDP per capita in selected Asia Pacific markets, 2005 11
Table 2: Inflation rates in selected Asian and Asia-Pacific markets, 2002-06 14
Table 3: GINI Co-efficient in selected countries, 2006 15
Table 4: Average balance per credit card by issuer, 2006 35
Table 5: Ownership of New Zealand's leading banks, 2006 36
Table 6: Selected credit cards from New Zealand issuers, 2007 38
Table 7: Selected credit cards with loyalty programmes from New Zealand issuers, 2007 40
Table 8: Forecasts for the debit card market, 2007f-2011f 43
Table 9: Forecasts for the credit card market, 2007f-2011f 45
Table 10: Forecasts for the charge card market, 2007f-2011f 46
Table 11: Population data for selected Asia Pacific countries, 2006 49
Table 12: Current GDP, 2005 50
Table 13: GDP growth rates in New Zealand. 2002-06 50
Table 14: The number of ATMs and population per ATM in New Zealand, 2002-06 50
Table 15: Number of EFTPOS terminals and population per EFTPOS terminal, 2002-06 51
Table 16: Current relevant Datamonitor publications, 2007 53
Table 17: Future relevant Datamonitor publications, 2007 53
List of Figures
Figure 1: Overview of New Zealand, 2005/6 8
Figure 2: Population size in selected Asia Pacific countries, 2006 9
Figure 3: GDP for selected countries across Asia Pacific, 2005 10
Figure 4: New Zealand's GDP is predominantly drawn from the services sector, 2006 12
Figure 5: The rate of New Zealand's GDP growth is slowing, 2002-06 13
Figure 6: Debit cards dominate the payment card market in terms of cards in issue, 2002-06 16
Figure 7: The majority of payment card transactions are made on debit cards, 2002-06 17
Figure 8: The frequency of use of debit cards is exceptionally high, 2002-06 18
Figure 9: The proportion of payment card spend on credit cards is growing, 2002-06 19
Figure 10: The highest average transaction values are recorded on charge cards, 2002-06 20
Figure 11: Balances on consumer credit cards are growing slowly, 2002-06 21
Figure 12: Balances on consumer credit cards are growing slowly, 2002-06 22
Figure 13: Growth of New Zealand's ATM network jumped between 2004 and 2005, but was slow in 2006, 2002-06 23
Figure 14: New Zealand has an excellent EFTPOS terminal network, 2002-06 24
Figure 15: Diners Club accounts for a shrinking proportion of the charge card market in terms of cards in issue, 2002-06 29
Figure 16: American Express dominates the consumer charge card market in terms of value of transactions, 2002-06 30
Figure 17: Visa is the leading scheme in the credit card market in terms of cards in issue, 2002-06 31
Figure 18: Visa is also the dominant scheme in terms of credit card spend, 2002-06 32
Figure 14: ANZ National dominates the debit card market, 2007 33
Figure 20: ANZ National occupies the number one spot in the credit card market in terms of cards in issue, 2006 34
Figure 21: ANZ National narrowly holds the top spot of the credit card market in terms of balances outstanding, 2006 35
Figure 15: Future debit card growth is forecast to be driven by the number of transactions, 2006-11f 43
Figure 23: The credit card market is set to grow strongly over the next five years, 2006-2011f 44
Figure 24: The charge card market is forecast to continue to struggle over the coming years, 2006-2011f 46
Figure 25: SWOT analysis of the New Zealand payment card market, 2007 48