Dallas, TX (PRWEB) January 31, 2013
According to Statistics New Zealand 2012, New Zealand has a market economy based largely on tourism and primary industries such as agriculture. It depends heavily on international trade, mainly with Australia, China, the US and Japan. Economic free-market reforms since the 1980s have removed many barriers to foreign investment. Exports of goods and services account for around one-third of real expenditure gross domestic product (GDP) in the country.
The cards industry as a whole grew moderately at a CAGR of 4.99% during the review period (2007–2012), primarily drove by the prepaid and the debit card categories. The slow growth in the cards industry was mainly due to global economic crises as well as the ripple effects of the Christchurch earthquake that impacted the growth of major industries in the country.
During the review period, debit cards occupied the largest share in the overall cards and payments industry, and recorded a CAGR of 6.48%. Prepaid cards grew at a CAGR of 5.82% in the same period. The overall card industry is expected to grow at a CAGR of 3.77% over the forecast period (2013–2017), driven primarily by the debit and prepaid cards categories, which are expected to grow at CAGRs of 3.92% and 4.53% respectively. The credit cards category is also expected to grow, at a CAGR of 2.21% during the forecast period, while charge cards are expected to exhibit negative growth at a CAGR of 1.55%.
The New Zealand cards and payments industry presents positive growth potential
The New Zealand cards and payments industry grew moderately both in value and volume terms during the review period. Over the forecast period it is expected to increase at a CAGR of 3.77% in volume terms, and 3.75% in value terms. In terms of number of transactions, the New Zealand cards and payments industry grew significantly during the review period from 1.2 billion transactions in 2008 to 1.6 billion in 2012, at a CAGR of 7.13%. Debit card transactions remained the key growth driver, followed by credit cards. Over the forecast period the total cards transaction volume is expected to grow at a CAGR of 8.11%.
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Outbound tourism has driven the industry for globally accepted debit and credit cards
According to the Ministry of Business, Innovation and Employment in March 2012, tourism is one of New Zealand’s biggest export industries, accounting for 15.4% of New Zealand’s foreign exchange earnings. Tourism contributes almost 9% of the country’s GDP. According to data provided by Statistics New Zealand, the total number of outbound travelers increased at a CAGR of 2.77% between November 2008 and November 2012.
Consumer preference plays a key role in purchasing decisions
Price and charges associated with cards play a significant role in the overall card purchasing decision. Annual fees charged range from NZD20 to NZD125 in New Zealand. Price is also an important factor for corporate customers and government institutions, and although high interest rates are charged by banks, the use of credit and debit cards is not affected. ANZ offers the Cash-back Visa card charging 19.95% interest on purchases and an annual fee of NZD50. The card offers interest-free credit of 55 days.
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