eCommerce & Technology

Domestic and Preferred Card Schemes

The most commonly known are Visa, Mastercard, Diners and American Express. There are two fees that you should be aware of when considering offering credit card. Your bank will charge you a Merchant Service Fee (or MSF), typically a percentage of the transaction value – anywhere from 1 – 6%, (but likely to be around 4% for a startup business in a low risk business category), and your gateway will charge you a per transaction fee as well

Alternative Payment Methods

Payment Gateways – these connect all participants in a transaction together, i.e the merchant (you), the issuing bank (the bank that issued the card to your customer), the acquiring bank (your bank that issued you with a Merchant Account) and the credit card schemes.

The common Payment Gateways in New Zealand are DPS Payment Express, Paystation, Flo2cash and IP Payments. There are also new entrants such as Swipe that provide a complete service so you don’t need a separate relationship with a bank – i.e you get one fee per transaction that incorporates the MSF and gateway fee. Confusing, I know! The main New Zealand banks often have a branded Gateway offering e.g. BNZ Buyline or ANZ eGate. Often the banks’ offering is simply while labelled from one of the Payment Gateway providers, meaning the bank uses their system but put their branding on it.

Mobile Appetite

51% of smartphone users have used their smartphone to locate stores, 31% to compare prices.

- 8% of New Zealand Internet users aged between 15 and 65 have purchased physical goods online during the last 12 months via a smartphone, whereas 18% have purchased via a tablet.

- Total spend value: NZD 2.8 billion.

Mobile Operating Systems - Android is the preferred mobile operating system in New Zealand at 64%.

Other Payment Methods

Flo2Cash provides credit card services to enable merchants in receiving their payments as easily as possible, whether it be over a landline phone, internet or your mobile phone. All transactions are processed in real time. Like Swipe they’re able to offer a bundled service negating the need for a facility from a bank.

Specialized payment technologies development for eCommerce entrepreneurships as a Paymark Certified Solutions Provider, PayStation is there to help you find the right payment solution for you and your customers. They support internet credit card payment through the following banks: ANZ, ASB, Bank of New Zealand and Westpac. Paystation was recently purchased by Trade Me.

DPS is a well known credit card/payment gateway provider in New Zealand. It offers a range of services including merchant hosted and non-hosted options as well as a simple manual credit card processing facility

Local Entities & Mobile Payments

Semble reckons Kiwis are ready for the next step: making loyalty cards and vouchers available via mobile wallet, which Apple Pay in the US is currently offering to its customers. It says Kiwis are ready for this because smartphones play a big part in their lives. Over three quarters (77 percent) of New Zealanders own a smartphone and 69 percent of those owners are using business or banking apps, which is an easy transition into using a mobile wallet

Most Popular Social Network:

Facebook (2.9M users)

Most Popular Payment Method:

Credit Cards

eCommerce Volume:

$2.8 billion

Largest eCommerce Website: