EFTPOS (short for Electronic Funds Transfer at Point of Sale) has been a part of commerce in New Zealand since the 1980s. Card-present payments have been widespread here for decades, with cardholders making about 181 million transactions in October 2025.

But the system that made payments so easy in years past doesn’t align with how businesses operate today. Businesses that sell across channels, manage data in real time, or expect their payment systems to do more than accept a tap might find that EFTPOS doesn’t offer what they need.

Below, we’ll discuss what EFTPOS means in New Zealand today and look at smarter, more flexible alternatives that are starting to take its place.

What’s in this article?

• What is EFTPOS and how does it work in New Zealand?
  
• How does EFTPOS differ from modern payment terminals?
  
• Why are NZ businesses shifting from EFTPOS to cloud-based terminals?
  
• How can businesses transition from EFTPOS to a modern payment terminal?
  
• How Stripe Terminal can help
  

What is EFTPOS and how does it work in New Zealand?

EFTPOS culture is deeply entrenched in New Zealand, to the extent that EFTPOS cards are often grouped together with debit and credit cards. In a 2024 survey, 67% of respondents reported using debit, credit, or EFTPOS cards for everyday purchases from groceries to fuel. EFTPOS cards, in particular, allow customers to make in-person electronic payments directly from their bank accounts via an EFTPOS terminal.

Here’s how a typical EFTPOS transaction works:

• The EFTPOS card is tapped, inserted, or swiped. An EFTPOS terminal captures encrypted card data.

• The network routes the request. The info travels through a local switch, such as Worldline New Zealand (formerly Paymark), to the customer’s bank.

• The bank checks the account. If the card is valid and there are enough funds, the bank approves the transaction.

• The business gets paid. Funds usually settle into the business’s account in 1–2 days.

How does EFTPOS differ from modern payment terminals?

A payment terminal is the machine the customer taps or inserts their card into. Legacy EFTPOS and modern, cloud-connected terminals work differently, and the differences impact cost, capability, and scalability for your business.

Here’s what sets modern payment terminals apart from EFTPOS.

Stand-alone vs. software-connected

Traditional EFTPOS machines are self-contained. They process payments, print receipts, and sometimes sync sales totals from a till. They’re fast, cheap, and reliable, but their functions are limited. They don’t sync inventory, connect to customer relationship management (CRM) systems, provide reporting, or improve over time.

Modern terminals run on cloud-connected software. They link payments to inventory, customer profiles, loyalty programs, and sales dashboards. They update in real time and can be managed remotely. Businesses can scale or change setups without having to rely on on-site support or rigid legacy infrastructure.

Local routing vs. global card networks

In New Zealand, legacy EFTPOS machines can route eligible personal identification number (PIN) transactions through a local EFTPOS network. These are low-cost for the business, especially compared to Visa or Mastercard transaction fees (which can vary).

Modern terminals route payments through global card networks. This enables broader compatibility and more advanced features, although it incurs standard card fees for more transactions.

As dual-network cards roll out, many transactions can route either way, depending on the terminal and setup.

Why are NZ businesses shifting from EFTPOS to cloud-based terminals?

EFTPOS worked well when payments were simple, but modern businesses need more from their payment systems. Many businesses in New Zealand are making the switch to cloud-based terminals.

Here’s why.

Customer behavior moved first

Customer expectations are far from where they were decades ago. People are used to tapping, using their phones or watches, receiving a receipt by text, and earning loyalty points along the way. Cloud-based terminals are typically built for the way customers already shop: cross-channel, mobile-first, and straightforward.

The checkout is no longer a silo

Today, payments are just one part of a larger system. Businesses want their terminals to communicate with the rest of the company: to sync inventory, track customer history, and display real-time data. With legacy EFTPOS, none of that is possible. With a modern terminal, those functions are often built in or easily integrated.

Traditional systems have too many moving parts

A traditional EFTPOS setup in New Zealand still requires you to work with multiple parties: your bank, a hardware provider, and the local switch. If something breaks, diagnosing the issue or even knowing who to call can be a slow process. Cloud-based terminals consolidate those relationships so businesses are managing one platform, one point of support, and one system.

Security upgrades have become a burden

Security standards are advancing quickly. New Zealand businesses had to replace about 60,000 EFTPOS terminals between 2023 and mid-2024 due to compliance deadlines. Another mass upgrade is scheduled for 2026. Many traditional terminals can’t be updated remotely so businesses, especially those in New Zealand, are forced to swap hardware. Cloud-based terminals can automatically push updates, which helps extend device life and reduce unexpected costs.

The economics are shifting

EFTPOS requires a network fee to connect your terminal to the EFTPOS network. While that was once a reliable, affordable option for accepting debit-style payments in New Zealand, pricing models are changing and contactless payments are becoming increasingly widespread. A pay-as-you-go model is often more predictable and easier to manage for seasonal or new businesses.

Modern terminal advantages aren’t a passing trend. New Zealand businesses are moving from EFTPOS to cloud-based terminals because they need a better integrated and more adaptable option.

How can businesses transition from EFTPOS to a modern payment terminal?

Upgrading your point-of-sale (POS) system doesn’t need to be disruptive. If it’s done well, the transition from EFTPOS to a modern payment terminal will bring major benefits.

Here’s how to transition to a modern payment terminal.

Start with your use case

What do you need that your current setup can’t accomplish? Real-time reporting? Support for Tap to Pay on iPhone? Easier reconciliation with your ecommerce store? Let the answer guide your choice of provider and hardware.

Choose a setup that scales

Modern payment providers like Stripe let you start small and grow. There’s no need to renegotiate with your bank or bring in another vendor just to add a terminal.

Test before switching off

If you’re replacing an existing EFTPOS setup, run both systems in parallel for a few days. You can train staff, run sample sales, and ensure everything reconciles correctly. Once it does, retire the old terminal and close out your legacy contracts.

Link it to the rest of your tools

Cloud-based payments are known for their easy integration. Connect your terminal to your POS, accounting software, and inventory system. Make payments part of your operating system, not a siloed addition.

How Stripe Terminal can help

Stripe Terminal allows businesses to grow revenue with unified payments across in-person and online channels. It supports new payment methods, simple hardware logistics, global coverage, and hundreds of POS and commerce integrations to design your ideal payment stack.

Stripe powers unified commerce for brands like Hertz, URBN, Lands’ End, Shopify, Lightspeed, and Mindbody.

Stripe Terminal can help you:

• Unify commerce: Manage online and in-person payments on a global platform with unified payment data.

• Expand globally: Scale to 24 countries with a single set of integrations and popular payment methods.

• Integrate your way: Develop your own custom POS app or connect with your existing tech stack using third-party POS and commerce integrations.

• Simplify hardware logistics: Easily order, manage, and monitor Stripe-supported readers, wherever they are.

Learn more about Stripe Terminal, or get started today.