Offering alternative payment methods is more important than ever for merchants, suggests report.
Move over credit cards. A new survey has confirmed that New Zealanders are shifting away from credit cards at an unprecedented rate.
The report, conducted by Morning Consult for Afterpay, surveyed 20,000 people worldwide and uncovered a dramatic shift in payment preferences, signalling the end of credit cards’ dominance and a growing preference for Buy Now Pay Later (BNPL)
The report, ‘Why Credit Cards Give Gen Z the Ick’, found that 60 per cent of New Zealanders have ditched their credit cards for alternative payment methods. Young consumers were especially dissatisfied with credit cards, with 35 per cent of Gen Zs claiming that credit cards give them ‘the ick’.
The report, ‘Why Credit Cards Give Gen Z the Ick,’ offers a deep dive into the evolving financial attitudes of New Zealand consumers. It also provides businesses with fresh insights into how consumers are spending and saving.
Key takeaways for merchants
Credit cards are on the decline among young consumers
Buy Now, Pay Later (BNPL) is on the rise, with 44 per cent of New Zealand adults of all ages open to using it in future
More than half of Gen Z will abandon a purchase if their preferred payment method isn’t available
Consumers are watching what they spend – and how they spend
As the cost-of-living crisis continues, many consumers are thinking carefully about their spending, with 85 percent of New Zealanders using budgets to manage their spending, according to the report.
However, consumers are not only evaluating what they’re spending, they’re also examining the way they pay, and assessing the benefits and drawbacks of different payment methods.
Financial stress is high – especially among Gen Z
The report discovered that many New Zealanders have limited financial flexibility; more than two in five (43%) have less than $900 saved for emergencies. This is particularly true for Gen X with more than half (51%) reporting that they have less than $900 saved up.
Liquidity is king. Credit cards are in decline
Cash and debit cards emerged as the most popular payment methods across all age groups. However, credit card usage falls sharply among younger age groups. While 64 per cent of Boomers use credit cards, that drops to 30 percent for Gen Z. In fact, Gen Z is the group that is most open to alternative payment methods like BNPL.
The report found that far from alleviating financial stress, credit cards are more likely to exacerbate it, with six out of seven New Zealanders (85%) agreeing that credit cards can be financially dangerous and 38 per cent of New Zealanders reporting that credit card bills make them feel “stressed.” Most young consumers (67%) also admit that they don’t fully understand credit card terms and conditions.
BNPL on the rise
By comparison, alternative payment methods are becoming more popular, with 44 percent of New Zealand adults open to using BNPL in the future. This rises to 55 percent among Gen Zs.
Australians are loyal to their payment method
The survey found that New Zealanders are loyal to their preferred payment methods – so loyal that more than half (54%) would rather abandon a purchase than use an alternative when merchants don’t accept their first choice.
The bottom line for merchants? It is increasingly important for businesses to not only offer an array of payment options but also understand how their target audience prefers to pay.
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*Source: All statistics sourced from Why Credit Cards Give Gen Z the Ick, Morning Consult, 2025
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