Your June 2025 Newsletter

June 2025

Kia Ora

As winter sets in, we turn our attention to one of the more unexpected features of life in New Zealand: just how digital everything is. From banking and bill payments to shopping and even teaching kids about money, New Zealanders are living in a highly connected, largely cashless society.

This month, we explore what that looks like for newcomers. Many are surprised to find that cheques are long gone, paper statements are rare, and bank branches are few and far between. We also share a clever solution one family is using to help their kids understand money in a world where cash has all but disappeared.

We’ll also touch on something uniquely Kiwi: the PayWave surcharge, a small fee that might trip you up if you’re not expecting it.

New Zealand may feel laid-back, but its tech habits are surprisingly modern. By embracing digital payments, going paperless, and understanding the local quirks, you’ll be well on your way to feeling like a local.

No Cash? No Problem.

Kiwis have adopted the world of digital payments with great enthusiasm. You'll find that cash is seldom used, especially in urban areas.

Here’s how most people pay:

EFTPOS cards (debit cards) are everywhere and used for everything from your morning coffee to supermarket trips.

PayWave (tap-and-go) is available in most stores, cafés, and petrol stations. Just be aware, a small surcharge (usually 1–2%) is often added when you use PayWave instead of inserting your card or using EFTPOS.

Banking apps are widely used, especially for transferring money to friends or paying small businesses.

Automatic Payments (APs) and Direct Debits are common for recurring payments like rent, electricity, and mobile bills.

If you're used to cash transactions or writing cheques, the switch might feel abrupt, but most people find it easy to adapt, and safer too.

COVID-19 Accelerated the Digital Shift

New Zealand was already on the digital path, but COVID-19 was a tipping point. In the wake of the pandemic:

Physical cash use plummeted

Retailers moved to contactless-only systems

Banks reduced their physical presence and opening hours

Most people adopted online or app-based systems for bills, statements, and communication

The result? A society where it's entirely possible to go months without using a bank branch or receiving physical mail.

Going Paperless: Bills, Statements, and Security

Many new arrivals ask about mail forwarding or PO Boxes, if they are planning to be away for extended periods. While these services exist, you might find your postbox surprisingly quiet.

New Zealanders expect to receive most things electronically:

Bank statements

Utility bills

Medical appointment reminders

School communications

While it can feel impersonal at first, the system has its upsides:

You can manage your finances from anywhere, even if you're travelling overseas.

It's more secure, with less chance of sensitive information being intercepted or lost.

It keeps your paperwork minimal (great for those trying to reduce clutter).

We recommend setting up online accounts with all your providers so you can stay on top of things wherever you are.

Kids & the "Invisible" Dollar

If your children are used to physical pocket money or a piggy bank, New Zealand’s cashless culture can make it harder for them to understand the value of money.

One of our team members shared that her 11-year-old son, growing up in a world of cards and phones, was baffled when asked where money comes from:

“He said, ‘You just swipe your card, Mum.’ That’s when I realised he had no concept of earning, saving or spending.”

Many Kiwi families are using apps like Square One, which give children their own digital wallets linked to a parent account. They can learn to save, budget, and track spending, skills that are now just as important as knowing how to count coins.

Whether you use an app or just talk about online spending, it's a good idea to explain things like:

The difference between a debit card and a credit card.

Why “tap and go” still costs real money.

How to budget when there’s no physical cash to see disappearing.

For newcomers to New Zealand, it’s a smart way to introduce local banking habits while building confidence and financial literacy from an early age.

Quick Tip: Watch for the PayWave Charge

A uniquely Kiwi quirk that often catches newcomers off guard: the PayWave surcharge. While tapping your card is convenient, many businesses in New Zealand add a small fee if you choose to tap rather than insert your EFTPOS card.

The reason? It comes down to bank fees for merchants. EFTPOS transactions are essentially free for the retailer, but credit/debit card networks charge a fee when you PayWave, so those costs are passed on to you.

While the surcharge isn’t unique to New Zealand, it is more commonly visible and applied here, especially compared to the UK, US, and much of Europe, where card surcharges are restricted or culturally frowned upon.

It’s not a deal-breaker, but it helps to know before you tap!