US based digital payments company Stripe has launched in New Zealand. Stripe is a payment services provider that allows businesses to process online payments received from its customers, even when they use payment methods such as credit cards, debit cards and Apple Pay.
It can be viewed as a competitor to PayPal in the sense that both technologies allow businesses to accept payments through apps and websites. Despite not having the same brand recognition as PayPal, it has been used by companies such as Salesforce and Amazon, and has already signed up start-up company Xero as part of its expansion into New Zealand.
“Businesses in New Zealand can now sign up instantly and start accepting payments in minutes with 135+ currencies from customers around the world,” said Mac Wang, Head of Growth for Stripe Australia and New Zealand.
Wang believes New Zealand is an appealing market due to its high uptake of smartphones and reduced focus on cash usage.
According to data from RFi Group’s New Zealand Payments Council, the proportion of consumers in New Zealand who had used cash as a payment method in the last 12 months had fallen from 82% in April 2016 to 74% in April 2017.
Smartphone penetration had increased from 71% to 77% over the same 12-month period. Furthermore, in April 2017, 90% of consumers had made an online purchase at least once in the previous 12 months.