Kiwis paying with plastic more

Kiwis are continuing to move away from cash, turning increasingly to using debit and credit cards or internet banking.

The latest MasterCard survey on consumer purchasing priorities asked people about their top three types of payment and cash registered last in 13 out of 19 categories. Credit cards came out on top or a close second in all bar three categories.

The survey found that debit cards, such as Eftpos, were the most common choice for everyday expenses such as groceries (42 per cent), dining out (41 per cent), and personal care goods (38 per cent) and services (33 per cent).

However, when it comes to retail shopping (43 per cent) and the purchase of household goods (42 per cent), more New Zealanders prefer to use their credit cards.

Internet banking is the preferred choice for mortgage/rent (58 per cent) and power and phone payments (46 per cent).

Albert Naffah, MasterCard NZ country manager, said the way Kiwis are paying is changing as consumers moved away from having cash in their wallets, with a growing number using debit and credit cards for over-the-counter purchases.

"Although cash is still popular when it comes to purchasing small ticket items, such as public transportation, most people are choosing to use some form of electronic payment option for all other purchases or expenditure," Mr Naffah said.

He said it was already well know that New Zealand led the world in adopting electronic payment solutions, and there was a strong willingness among consumers to adopt mobile payment methods.

"Electronic payment means consumers can keep a much closer watch on how and where they spend their money and, as savvy money managers, the ability to track their spending appeals to Kiwis.

"Although we don't expect cash to ever fully disappear, as safe, new and convenient forms of payment, like 'tap-and-go' PayPass become more widely available, we expect this will only serve to decrease the need to use cash for everyday purchases," Mr Naffah said.

Major retailers - including Bunnings, Kmart, The Warehouse, Resene, Repco, BP and Countdown - are already offering consumers "tap-and-go" on payments under $80.