New Zealanders use less cash, positive about a cashless society
Auckland, 30 July 2008 - New Zealanders are ‘on the leading edge of the trend toward a cashless society’ according to a MasterCard Worldwide survey on the payment habits and perceptions of consumers in 13 markets across the globe.
The findings, announced today, are the result of over 7,000 interviews conducted with consumers in the United States, Canada, the United Kingdom, Italy, France, Germany, and Australia, New Zealand, Singapore, Hong Kong, Malaysia, South Korea and China.
A key finding was that two-thirds of all consumers polled indicated they use less cash now than they did five years ago. This was especially the case in New Zealand (82%), Australia (80%), and South Korea (87%)
Some 80% of all consumers polled disliked carrying large amounts of money. Australians (88%) and New Zealanders (87%) felt especially strongly about this, saying they were uncomfortable carrying large amounts of cash. The same percentage of New Zealanders agreed with the statement that it was ‘no longer necessary to have lots of cash on hand’, which was the highest percentage in the survey.
“The trend towards carrying less cash, and increasingly using credit cards for everyday purchases, coupled with the emphasis placed on earning rewards when choosing a payment method, confirms New Zealanders are increasingly sophisticated in their use of credit cards,” said Stuart McKinlay, Country Manager New Zealand, MasterCard Worldwide.
“Consumers across the 13 markets are becoming less reliant on cash. This indicates consumers are increasingly using payment cards to make their purchases as they become aware of the benefits – convenience, ability to earn rewards, security features and the ability to track expenses.”
Contactless payment technology, such as MasterCard® PayPass™, is fast catching on in the markets where it has been deployed. Our early adopter status was confirmed in the survey when 62% of New Zealand respondents said they were likely to use contactless payment cards.
“It is interesting that the survey found that only about a third of New Zealanders were aware of contactless technology but, on having the technology explained to them, were among the most likely to use it,” said McKinlay.
“New Zealanders have always shown themselves willing to embrace new technology but their eagerness for contactless payment solutions could also perhaps be partially explained by the fact that we are only willing to wait five minutes or less to pay for small purchases.”
Sixty four per cent of New Zealanders were willing to wait five minutes or less to make a purchase of less than $25. Only Australians (66%) and Chinese (69%) were less patient. South Korean consumers were the most patient.
Globally, the convenience factor was perceived as the biggest benefit by consumers to using contactless payments (47%), followed by the additional security features contactless cards provide (39%), the extra seconds shaved off from the time it takes to make a purchase (38%), and the benefit of not having to carry cash when you have a contactless card (34%).
About MasterCard Worldwide
MasterCard Worldwide advances global commerce by providing a critical economic link among financial institutions, businesses, cardholders and merchants worldwide. As a franchisor, processor and advisor, MasterCard develops and markets payment solutions, processes over 18 billion transactions each year, and provides industry-leading analysis and consulting services to financial institution customers and merchants. Through its family of brands, including MasterCard®, Maestro® and Cirrus®, MasterCard serves consumers and businesses in more than 210 countries and territories. For more information go to www.mastercard.com