Debit Card Surges In Popularity

Media Release
26 August 2007

Debit Card Surges In Popularity

Westpac says New Zealanders are catching up fast to the international trend towards debit cards – cards which allow people to buy on-line and over the phone like a credit card, but use money from their own day-to-day accounts.

The first such card in New Zealand, the Westpac Debitplus Visa card, was launched nine months ago, giving people better access and control over their money.

Westpac data shows New Zealanders have embraced the card, with Debitplus cards surpassing credit cards in the number of cards issued over the past two months – three in every five cards issued have been Debitplus cards.

The four online and over the phone retailers receiving the most Debitplus transactions since the launch include Trade Me, Telecom, Vodafone and iTunes.

Westpac Head of Product Management, Brian Hayr, says the Westpac Debitplus Visa card is the perfect choice for New Zealanders wanting better access to their money, for instance allowing people to get cash out overseas from ATMs, or take up cheaper deals available online or in catalogues.

“This form of payment has been embraced by Kiwis from all walks of life, however it has proved very popular among the youth and elderly. The Westpac Debitplus Visa card has opened up a world of e-commerce that has been previous unavailable to people of these age groups,” he says.

The popularity of Westpac’s Debitplus Visa card is a signal New Zealanders are catching up to an international payment trend - Visa debit cards accounted for 58 per cent of Visa’s total global transactions during the 12 months ended 30 September 2006*, exceeding credit card volumes.

By world standards New Zealand has been slow to adopt Visa debit cards, which were introduced into the US in the early 1990s and Australia in the early 1980s, and even now Westpac is the only bank providing New Zealanders with debit cards as a form of payment.

EFTPOS, which has been in New Zealand for more than 20 years, is cited as one of the main reasons New Zealand is only now embracing debit cards as a form of payment, according to Iain Jamieson, New Zealand’s Country Manager for Visa International.

“New Zealand was one of the first countries to introduce an EFTPOS style payment platform however with the rise of online shopping, people around the globe are demanding the added functionality of a payment card such as Visa Debit,” says Mr Jamieson.

“Westpac has been at the heart of New Zealand communities for the past 145 years making a social contribution through our people, sponsorships and the services we provide as a bank. We are proud to be working with Visa to provide our customers with a product that is a New Zealand first, allowing them to better manage their finances and have greater purchasing power,” adds Mr Hayr.

Some of the features of the new card include:

• Debitplus is not a credit card however it has the functionality of one
• Debitplus cards can be used everywhere Visa is accepted including over the Internet, by telephone and via mail order. Visa enjoys unsurpassed acceptance around the world
• Uses funds held in customer’s own Westpac transactional account (cheque) rather than a line of credit
• When using the card in Eftpos handsets customer selects ‘cheque or savings’
• When using card overseas or when using credit card-only handsets customer selects ‘credit’
• When using on the internet or telephone or mail order the customer provides the card number and selects Visa
• A $10 annual fee applies per card
• Transaction account fees for domestic use through Eftpos terminals – as per the customers’ transaction account plan. This can be zero
• Transaction fee for online usage – as per the customers’ transaction account plan. This can be zero
• Visa transaction fees overseas are the same as Visa credit cards.
To find out more about the Westpac Debitplus Visa card go to www.westpac.co.nz or enquire at your local Westpac branch.

* As reported by member financial institutions globally and therefore may be subject to change.

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