New Visa data reveals insights into inbound spend in NZ
Visa insights into inbound spend reveal the retail sector remains the top spend category for international visitors, with ‘restaurants’ and ‘food and grocery’ signaling fastest growth
Visa Inc. (NYSE: V), the global payments network, has today unveiled new data into the spending habits of international Visa cardholders to help New Zealand merchant and tourism communities gain insights into top performing spend categories, growth markets and visitor payment preferences.
The data is taken from VisaNet, Visa’s global payments network, which processes transactions made by more than 3.4 billion Visa cards issued in more than 200 countries and territories. This year’s data includes all 2018 transactions made using Visa cards not issued in New Zealand, via face-to-face and digital channels.
Visa Country Manager for New Zealand and South Pacific, Marty Kerr, says Visa’s inbound spend data offers critical cues for retailers, merchants and tourism operators, suggesting how they might better meet the needs of international customers, who are key contributors to New Zealand’s economy.
“Two categories that experienced sizable growth in spend volume, which could signal a growing appetite for New Zealand’s culinary scene, were ‘restaurants’ and ‘food and grocery’, with year-on-year spend increasing by 15% and 10% respectively,” says Kerr.
“Meanwhile, retail, the largest category for inbound spend, grew by 11%.”
The top four source markets by spend were Australia, the United States, the United Kingdom and China, making up almost two thirds of 2018 inbound spend, with other key markets including Germany and France.
Of the 25 highest spending markets, Taiwan, South Africa and the Netherlands demonstrated the most significant year-on-year spend growth with a 28% average growth rate across the three.
Visa’s data also highlighted the growth potential of e-commerce for New Zealand merchants and the growing preference for innovative payments technology.
With data showing that merchants in Australia, the UK and the US benefit from 70% more online spend proportionately than Kiwi merchants, there’s an opportunity for local retailers to be mindful of the potential of e-commerce sales for their business.
Meanwhile, the number of international visitors making contactless payments on cards, phones and wearables grew by 64%, with visitors from Germany and the UK increasing their contactless spend by more than 100%, and those from the USA by 200%.
“When we look at sales channels, we see digital commerce used more regularly in the UK, US and Australia than in New Zealand. This is important for New Zealand merchants who need to invest in their digital platforms to ensure they are providing excellent customer experience from browsing through to payment.
“Digital commerce is a global playing field and while we may be a small country far from consumers in Europe, Asia and North America, our merchants offer goods and services that are world-class. It’s important their platforms help to tell this story,” said Kerr.
In partnership with Tourism Industry Aotearoa (TIA), Visa shared these insights with industry leaders to encourage future development of the sector and support growth strategies. TIA CEO Chris Roberts says ‘investing to deliver quality tourism data and research’ is one of 10 actions to achieving sustainable tourism in order for New Zealand’s broader economy to flourish.
“Our Sustainable Growth Framework keeps our focus firmly on growing our value to individuals, communities, the environment, the economy and for our visitors. Independent insights such as Visa’s inbound spend data trends are hugely valuable to help inform how we go about achieving this focus,” added Roberts.
About Visa Inc.
Visa Inc. (NYSE: V) is the world’s leader in digital payments. Our mission is to connect the world through the most innovative, reliable and secure payment network – enabling individuals, businesses and economies to thrive. Our advanced global processing network, VisaNet, provides secure and reliable payments around the world, and is capable of handling more than 65,000 transaction messages a second. The company’s relentless focus on innovation is a catalyst for the rapid growth of connected commerce on any device, and a driving force behind the dream of a cashless future for everyone, everywhere. As the world moves from analog to digital, Visa is applying our brand, products, people, network and scale to reshape the future of commerce. For more information, visit About Visa, https://usa.visa.com/visa-everywhere/blog.html and @VisaNews.
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