Question 1

What is the total addressable revenue for mobile payment providers in New Zealand?

Accepted Answer

The market presents a NZ$1.36 billion revenue opportunity in transaction commissions, calculated as 1.5% of the NZ$90.5 billion in total annual electronic card transactions. This represents a significant value pool for digital platforms capable of displacing traditional physical wallet usage.

Question 2

How fast is the transition from traditional banking to mobile-first payments occurring?

Accepted Answer

While 73% of New Zealanders utilize internet banking, mobile payment adoption reached 55% in 2020, up from 50% in 2018. Despite this growth, a 18% gap remains between general digital banking and active mobile payment usage, indicating a large untapped user base.

Question 3

Which providers currently control the market and where is the competitive risk?

Accepted Answer

Bank-issued apps currently lead with a 59% preference share among consumers. However, these incumbents are vulnerable in high-income segments where Apple Pay usage increases, contrasting with bank apps which see declining usage as household income rises.

Question 4

What are the primary demographic barriers to achieving universal mobile payment adoption?

Accepted Answer

Adoption is heavily skewed by age, with 54% of non-users falling into the 55+ demographic. With smartphone penetration already exceeding 80%, the challenge for providers is not hardware access but converting the 31% of current users who transact weekly into daily users.

Mobile payments – billion dollar opportunity in New Zealand to go walletless

Abstract

Key Takeaways

Frequently Asked Questions

Abstract

Key Takeaways

Frequently Asked Questions

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