Point-of-sale trends are changing at a rapid pace as more consumers use digital currency and other payment methods at the checkout.
Digital wallets are proving popular and their use is expected to grow by 21 percent to 2025. Photo: 123RF
The rate of change was keeping pace with New Zealand's e-commerce market, which was forecast to grow 38 percent over the next three years to $US8.5 billion, according to a report by global fintech company, FIS.
FIS regional general manager Phil Pomford said digital wallets were expected to grow by 21 percent to 2025, as they offered a superior checkout experience, with simplicity and speed cited by consumers as the main reasons for using them.
Buy-now-pay-later (BNPL) was also picking up as a mainstream payment method in New Zealand and expected to account for 17 percent of the value of e-commerce transactions by 2025.
"Australia and New Zealand are absolutely at the forefront of that shift to alternative payment methods," Pomford said, adding the growth in BNPL was outpacing other places.
"While instalment payments are not a new concept, both banks and merchants can no longer ignore the fact that consumers are seeking out BNPL as a more affordable and convenient alternative to credit cards."
He said BNPL offerings were likely evolve to become more sophisticated, from a regulation and innovation standpoint.
