Boxing Day has always reigned king in terms of Kiwi spending, however 2020 proved it may have lost its title. Spending data from TransferWise has shown that Black Friday deals in fact enticed spenders more.
Data from transactions made on the TransferWise multi-currency debit card revealed that Boxing Day saw a 63 percent decrease in sales compared to November’s Black Friday and 53 percent to Cyber Monday.
TransferWise country manager, Tim Cameron, says it’s fascinating to see Black Friday become more popular than Boxing Day in New Zealand.
“It looks like Kiwis no longer want to wait until after Christmas to score themselves a bargain.”
Kiwis seemed to be treating themselves on Boxing Day across department stores (+50 percent), clothing (63 percent) and electronics (32 percent). Although Black Friday and Cyber Monday saw even larger percentage increases in the top spending categories.
As Black Friday and Boxing Day sales are celebrated around the world, it isn’t surprising that many Kiwis spent money overseas. On Black Friday weekend Kiwis spent money in 61 different countries, which was more than double the output of Boxing Day, where Kiwis spent money in only 30 countries.
TransferWise found that on Black Friday and Cyber Monday there were significant increases in spending across the Euro, Great British Pound, United States Dollar and Australian dollar.
Cameron says Kiwis should avoid the pesky currency conversion fees that come with using traditional bank cards when online shopping.
“We think it’s better to keep that money in your back pocket rather than giving it to the banks.”
Tips on how to avoid hidden fees when shopping in another currency:
- Always pay in the local currency to avoid ‘dynamic currency conversion’ that happens each time you’re presented with the option to either pay in local currency or your home currency. E.g when shopping from a US retailer, pay in USD rather than NZD to avoid the retailer using their own currency conversion.
- Avoid using a bank card on foreign purchases. Whether you’re paying in your home currency or the merchant’s local currency, most banks charge what’s known as foreign or international transaction fee, which often ranges from 2-5% of the total transaction amount.