Payment processing company Paymark says contactless payments are starting to gain traction.
Most banks now issue contactless cards, which allow the user to simply wave it at a reader for purchases less than $80, but the take up has been relatively slow and there have been some concerns about security.
Paymark, which processes about two thirds of the country's electronic transactions, says contactless payments rose 0.4% in July.
Head of sales and marketing Paul Whitson says the trend shows they are starting to replace debit, credit and cash purchases.
He says several banks have increased the number of contactless cards they are issuing and some retailers now have contactless devices on their counter, so it's more available to people.
Mr Whitson says it's likely to become more pervasive as the number of cards in the market and acceptance devices in store increase.
He says the customer experience has been patchy and retailers are receiving training to ensure transactions with contactless cards are seamless.
