Kiwis Primed for Shift to Mobile Payments

MasterCard Survey Reveals Trends in Mobile Uptake and Purchasing Habits

New research[1] by MasterCard into online shopping has revealed that two thirds of New Zealanders have access to the internet through their mobile phones making them ready to start purchasing.

The high rate of mobile internet penetration is a key enabler for the mainstream adoption of mobile commerce and positions New Zealand well to become a regional leader in this rapidly developing sector.

"New Zealand is at a tipping point ready to switch to mobile payments in a dramatic way," said MasterCard Country Manager Albert Naffah.

"We know how much Kiwis love innovation, so given the wide extent of mobile internet penetration we should start to follow global adoption trends already apparent in other markets that have changed consumer behaviour."

Those who made mobile purchases cited convenience (48 per cent), availability of shopping apps (36 per cent) and being able to make purchases 'on the go' (36 per cent) as the primary drivers for usage.

Even so, only 8 per cent of those surveyed in New Zealand with mobile internet access have made online purchases using their mobile phones in the past three months, but that could be about to change.

"I am confident we are now at a moment of critical mass given the strong enthusiasm we can see happening in other markets in the Asia Pacific region," said Mr Naffah.

Comparatively, the number of respondents surveyed outside New Zealand who purchased items through their mobile phones is already high. For example survey respondents in Thailand (59 per cent), China (37 per cent) and Vietnam (32 per cent) said that they were already making mobile purchases.

Notably Australia (7 per cent) ranked behind New Zealand (8 per cent), with both markets yet to fully explore the potential of this channel.

MasterCard's latest research comes as consumers continue to embrace innovative and new ways to make payments.

"We are seeing a transformational shift in the payments industry around the world as financial services, computing and communications technologies converge. As people look to shop in ways that best suit their needs and lifestyles, we can expect the proliferation of mobile payments innovation to continue increasing."

"Kiwis are already at ease making small value transactions like buying a coffee on their card, so it makes sense that the roll out of MasterCard PayPass contactless technology across New Zealand will be popular with consumers."

"PayPass is the same technology now found on NFC (near field communication) enabled mobile handsets which allow consumers to make purchases in store, at the point of sale, by simply tapping their smartphone against the contactless reader. Together with mobile wallet trials, we anticipate mobile phones will be increasingly used as an easy, convenient way to pay," concluded MasterCard's Country Manager Albert Naffah.

MasterCard also recently launched the MasterCard Mobile Money Partnership Program . Working with Comviva , Sybase 365 and Utiba , MasterCard is enabling consumers around the world to purchase goods and services via their mobile phones at millions of brick and mortar and online merchants worldwide, as well as transfer funds and pay bills. With over five billion mobile phone users worldwide, this program provides powerful options to people through a device that's already in the palm of their hands today, and helps ensure consumers can transact where and when they choose.