Contactless card use doubles in NZ
New Zealand's biggest card payments network, Paymark, says contactless card transaction volumes have doubled since August after one of the two largest supermarket chains and three major petrol station chains adopted contactless terminals.Use of credit and debit cards with Visa's payWave and Mastercard's PayPass systems started later in New Zealand than in Australia, but it has accelerated sharply over the last year. Paymark and Visa said the adoption by card issuing banks of the EMV chip card standard by the end of last year was a catalyst, along with terminal rollouts by the biggest supermarket, petrol station and fast food chains. Over the last year the Woolworths-owned Progressive Enterprises has adopted the terminals in its 168 Countdown supermarkets, which have a 45 per cent share of New Zealand's grocery market.Petrol station chains BP, Caltex and Z Energy (formerly Shell) have also adopted the terminals, as has discount department store group The Warehouse, which has 92 stores. Burger King and Subway have also adopted contactless terminals in New Zealand.Paymark's head of customer relations, Mark Spicer, said contactless payment volumes rose to around 2 million in March from 1 million in August 2013. EFTPOS and credit or debit card transactions through Paymark totalled 89 million in March so contactless transactions still remain a low proportion of all electronic transactions.But the use of contactless cards got a further boost on Thursday when locally-owned supermarket cooperative Foodstuffs, which controls more than 50 per cent of the grocery market, announced it would start rolling out the terminals from late 2014.It announced it would make terminals available for payWave and PayPass to its members, who operate 700 Pak'n'Save, New World and Four Square stores with 3,500 terminals. Visa NZ country manager Caroline Ada said contactless spending had risen from nearly zero a year ago to around 10% of Visa credit and debit card spending in less than a year. "It's a lot faster than in Australia," Ada said of the acceleration in usage, comparing it to a longer four-year ramp up in contactless use in Australia. "The thing that really gave it the kicker in the volume we're seeing now was the two supermarkets, and the supermarkets only really switched on at the latter end of that four year ramp-up," she said.