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Cash set to almost disappear from New Zealand by 2023 - study

Newshub logoNewshub 12/03/2020 James Fyfe, Emma Stanford

Concept online payment mobile technology. Hand of female using smartphone touching pay button mobile banking application in restaurant © Getty Images Concept online payment mobile technology. Hand of female using smartphone touching pay button mobile banking application in restaurant A new study predicts cash is set to almost disappear in New Zealand over the next three years.

The report, from EFTPOS provider Worldpay, shows Kiwis are increasingly moving towards shopping on their mobile phones, with 42 percent of all online purchases last year done via mobile.

That figure is estimated to grow to 59 percent by 2023.

The report forecast that cash will soon become almost non-existent in New Zealand, with just one in five Kiwis expected to use cash by 2023.

Last year there was a spike in popularity in digital and mobile wallets such as Apple Pay, Google Pay, and PayPal, which accounted for 19 percent of all transactions made online.

The fast growth of mobile-based purchasing is due to people becoming more confident in online security, says Phil Pomford, general manager for Global eCommerce, APAC, Worldpay Merchant Solutions, FIS.

"People, when they're using their mobile device and using biometrics like facial recognition or their thumbprint, are feeling a lot more confident around security features," Pomford told Newshub.

"People are making decisions around shopping or movies or even food delivery for example on their way home from work or while they're exercising."

Worldwide, 41.8 percent of overall transactions were made through digital and mobile means in 2019.

For the time being though, cash and card (debit and credit) remain the most popular ways to pay in New Zealand, accounting for 93 percent of payments made at physical checkouts in 2019.

The e-commerce market in New Zealand is forecast to grow more than 20 percent, to $9.7 billion, in 2023.

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