The Coronavirus (SARS-CoV-2) outbreak, dubbed COVID-19, is first and foremost a human tragedy, affecting millions of people globally. The contagious Coronavirus, which broke out at the close of 2019, has led to a medical emergency across the world, with the World Health Organization officially declaring the novel Coronavirus a pandemic on March 11, 2020.
New Zealand has been able to successfully contain the virus spread with strict lockdown measures and policies, with total confirmed cases of 1,507 and a death toll of just 22. While the crisis has caused the country’s economy to contract, it will gradually recover now that the lockdown restrictions have been largely removed, with payments companies set to benefit.
In an attempt to avoid contraction in the overall economy, on March 16 the Reserve Bank of New Zealand (RBNZ) reduced its official cash rate to 0.25% - a 75 basis points cut. The rate will be kept at 0.25% for at least one year according to the RBNZ.
This report focuses on the impact of the coronavirus outbreak on both the economyand the cards and payments industry in New Zealand. Based on our proprietary datasets, the snapshotprovides a detailed comparison between pre-COVID-19 forecasts andrevised forecasts of total payment card, debit card, and credit and charge card transactions by value and volume. It also offers information on measures taken by the government to combat coronavirus.
- Coronavirus has had a profound effect on New Zealand’s tourism industry. Tourism is the country’s biggest export earner, contributing 21% of foreign exchange earnings and 5.8% of GDP while providing jobs to around 230,000 individuals. Chinese tourists have been barred from entering the country since February, resulting in significant lost revenue.
- While cash is likely to take a back seat in the short term, usage of contactless cards will grow. The temporary increase of the contactless payment limit from NZ$80 ($53.96) to NZ$200 ($134.89) will further boost digital payments.
- Retail customers and small businesses are especially vulnerable. To ease the debt burden, banks are offering interest rate cuts and payment deferrals on credit cards. For instance, starting April 1, 2020, ANZ temporarily reduced its purchase interest rate and cash advance interest rate on credit cards. On a similar note, Westpac is allowing credit card payment deferrals for its customers.
Reasons to Buy
- Make strategic decisions using top-level revised forecast data on New Zealand's payment industry.
- Understand the key market trends, challenges, and opportunities in New Zealand's cards and payments industry.
- Receive a comprehensive insight into payments market in New Zealand.
Table of ContentsCOVID-19 Update
- Impact Assessment
- Total Payment Cards Market vs. Pre-COVID-19 Forecasts
- Debit Card Payments Market vs. Pre-COVID-19 Forecasts
- Credit and Charge Card Payments Market vs. Pre-COVID-19 Forecasts
- COVID-19 Impact: Job Analysis
- Supplementary Data
- About the Publisher