Latest news with #PaymentsNZ
RNZ News
08-07-2025
- Business
- RNZ News
New website aims to make switching banks easier
Sick of your bank but overwhelmed by how switching might work? A new website launched in June hopes to change the perception that changing banks is too hard. In its market study into personal banking released last year, the Commerce Commission found half of New Zealanders had never switched banks, and thought switching had little benefit. The Commission says customer inertia means there is a lack of competitive pressure on the big four banks, which enjoy 85 to 90 per cent of the market. It is echoed by the smaller banks which complained to the Commission last year that the inertia made it hard for them to attract customers. The Commission also criticised a switching service run by the banks own governance organisation Payments NZ since 2010 - saying it wasn't working and that no assessment on its effectiveness was done. In response to that Payments NZ has revamped the service into a new website, ' Ready to Switch '. The website explains how it works, including transferring things like automatic payments and direct debits to a new bank. Steve Wiggins is chief executive of Payments NZ, and speaks to Kathryn about the new website. Commerce Commission chair John Small, also speaks about what benefits increased levels of switching could bring. Photo: RNZ
Scoop
04-07-2025
- Business
- Scoop
Payments NZ Launches Website To Demystify Switching
Payments NZ has launched a website to help banking customers better understand the switching process in Aotearoa New Zealand, as part of industry work to improve awareness and transparency around the service. The Ready to Switch site went live in mid-June, and provides information about what switching is, how it works, and what customers can expect from their current and new bank when they switch. It also includes links to bank websites for customers who want to start the process. The switching process has been in place since 2010, and is delivered by participating retail banks, with Payments NZ setting rules and standards. In 2024 the Commerce Commission recommended improvements to switching as part of its market study into personal banking services. Payments NZ convened an industry working group in response to the Commission's recommendations, with the website as an initial result. The industry working group has also established improved reporting, now shared with the Commission monthly, and is investigating other improvements to switching. Steve Wiggins, Chief Executive of Payments NZ, says the new website will be a useful starting point for greater awareness of switching. 'The best point of contact for customers who want to switch is with the bank they want to switch to. However, we recognise there's a place for consistent information from the industry that's independent of any one bank,' says Wiggins. 'The switching process isn't new, but we acknowledge that more New Zealanders need to know what it does and how to access it. 'We hope the new site will provide a resource the industry can build on to collectively raise awareness of switching, by letting banking customers know there's a process in place that makes it easy.' Although Payments NZ's work around switching coincides with the rollout of industry-led open banking, led through its API Centre, Wiggins says the processes are separate and independent from each other. 'An effective switching process and secure open banking are both part of delivering greater competition and choice for New Zealanders. They're independent workstreams, but one common element is they're both in place now and the job from here is to build on them,' says Wiggins. 'As consumers get more familiar with the switching process and open banking offerings, we're confident that they'll be better informed and more empowered to make choices that work for them.' The switching website is live at Question and answers about switching What is switching? The switching process makes it easy to move payment instructions, saved payees and account balances to a new bank. It means banking customers don't have to re-establish their direct debits and automatic payments, or set up saved payees again, when moving from one bank to another. If they choose to close their account at their current bank, it also lets them easily move their account balance over to their new bank. What does the switching process cover? The switching process covers: Payment instructions, including direct debits and automatic payments Saved payees Account balances, if the customer chooses to close their account with their current bank. What's not covered? Switching doesn't include: Any payments coming into the customer's bank account, such as salary payments or direct credits. Customers need to contact anyone making payments to them and provide their new bank account details. Recurring card payments (including credit cards). Home loans, credit cards, overdrafts or any other lending products. How long does it take? Once the customer's new bank submits a switching request, their current bank will share the information authorised with the new bank within five business days. From that point on, the new bank works to meet arrangements agreed with the customer, including meeting their chosen switch date. Who actually delivers switching? The switching process is delivered by participating banks in Aotearoa New Zealand, working directly with each other. Payments NZ sets rules and standards to govern the process. What rules and standards are in place for switching? Payments NZ's standards for switching include: A five-business-day service level agreement (SLA) for the current bank to provide information to the new bank Standardised forms and processes across banks Switching support teams at participating banks. Are banks meeting the switching standards? In April and May 2025, 99 percent of switches met the five-business-day SLA for the customer's current bank to send information to the new bank. 96 percent of switches actually met this standard in three business days or less. In all cases where switching took longer than five days, this was due to a customer-chosen future switch date. How many switches are happening? Payments NZ has received early reporting on the number of customers using the industry's formal account switching process. At this stage, the data has been shared with our BECS management committee and is not being released publicly. It's important to note that this data only reflects use of the formal switching process. Many customers choose to move their banking relationships without using the switching process, so the numbers we have don't represent the full extent of switching activity across the sector. Why aren't incoming payments covered? Some switching processes overseas, including in the United Kingdom, include a redirection function for incoming payments. However, in today's environment where customers are at a greater risk of fraud and scams, as well as being able to benefit from further innovation within payments, a redirection service can be counterproductive: Fraud risk: Redirecting payments from closed accounts can create vulnerabilities, hindering efforts across the industry to identify and close mule accounts, an essential fraud control. Innovation barrier: Redirecting payments can impact interoperability, create a barrier to entry for new banks, and break authorisation flows in open banking contexts. Customer delay: Redirection only defers the customer's responsibility to update payment sources, increasing the length of the switching process and requiring additional customer action once redirection ends. For these reasons, the Aotearoa payments industry is focussed on evolving the switching service alongside payments innovation. What else is Payments NZ doing in response to the Commerce Commission's recommendations? Apart from the launch of the new switching website, we've worked with our industry working group to develop new internal reporting processes that track switching volumes and service timeframes across the industry. As part of this work, banks now report monthly switching data to Payments NZ, including adherence to the five-business-day Service Level Agreement (SLA) for information transfer between banks. This data is shared with the Commerce Commission monthly. The industry working group has also reviewed aspects of the switching process that could be improved. This includes addressing operational friction points and clarifying roles and responsibilities to improve customer experience.
Techday NZ
18-06-2025
- Business
- Techday NZ
Open banking in New Zealand advances with NZD $13.77m spent
Payments NZ has released a report outlining six years of progress in open banking, highlighting industry delivery, collaboration and partnerships across New Zealand's open data ecosystem. The report, titled "Shaping Open Banking Together", reviews efforts and outcomes achieved by the sector since the establishment of the API Centre in 2019. Key metrics include the release of 25 open banking API standards, adoption by four major banks covering over 80% of customer accounts, and the engagement of more than 1,100 users in an API sandbox environment resulting in the development of 235 unique applications and over 13.7 million test calls. API standards and usage Since its inception, the API Centre has delivered six versions of API standards, with widespread implementation in the banking sector. Major financial institutions now support key open banking standards, facilitating secure and seamless access to banking services for a large proportion of New Zealanders. The API sandbox, supported by Glueware, has played a significant role in fostering innovation, with hundreds of community contributors involved in shaping the ecosystem. Community engagement has increased markedly, from just five contributors in 2019 to over 500 in the current year, and more than 11,000 working group hours have been logged by participants. Inclusive governance model The API Centre has adopted a governance model developed through industry collaboration. Over a dozen versions of the API Centre Terms and Conditions have been refined in consultation with banks, fintech firms, regulators and other stakeholders. This approach is described as being based on trust, inclusion and co-design. Collaboration has also extended to work with the Ministry of Business, Innovation and Employment (MBIE) on the Consumer Data Right (CPD) framework. Looking to the future, Payments NZ states that this inclusive and partnership-driven approach will continue as the industry transitions towards a regulated open banking environment. "We've built a world-class foundation for open banking in New Zealand – not through mandate, but through collective mahi. This report is a chance to pause, reflect, and acknowledge what we've achieved together," says Phil Cass, Manager of Payments NZ's API Centre. Financial investment and efficiency Payments NZ highlights that the open banking ecosystem has been established at a considerably lower cost compared with international efforts. The total investment over six years amounts to NZD $13.77 million, which represents approximately 5% of Australia's expenditure and 4% of that in the UK for similar sector initiatives. Phil Cass stated, "We now have upgraded, future-ready API standards being implemented by the major banks, new products hitting the market, and a strong platform for innovation. It's been a true partnership approach, and the outcomes speak for themselves." Cass noted that New Zealand's approach has allowed for progress without the need for regulatory compulsion, saying, "Our approach in Aotearoa is unique – open banking here has been shaped by cooperation, not compliance." He continued, "We've seen the cost of regulation in the UK and Australia, and in Aotearoa we have delivered a fully functioning ecosystem at a fraction of the cost." "We're carrying forward the same spirit of industry-led partnership and progress as we transition to a regulated environment for open banking." Data sovereignty and future focus The recent release also marked the launch of Ngā Tohu Ārahi, the new Data Handling Guidelines created in partnership with Nicholson Consulting. These guidelines are grounded in the principles of Māori Data Sovereignty and have implications for the design and management of data systems in the banking sector. Cass explained, "These guidelines are about more than compliance – they reflect our collective responsibility to design data systems with integrity and care." Preparations are underway for the formal designation of banks under New Zealand's CPD Act, expected in December 2025. Payments NZ believes the foundations laid through the API Centre will continue to support secure, innovative and inclusive banking solutions. "This is just the beginning," says Cass. "The next chapter of open banking will be even more impactful – and we're ready."
Scoop
30-05-2025
- Business
- Scoop
Another Milestone For Industry-Led Open Banking In Aotearoa New Zealand
Press Release – Payments NZ Open banking in Aotearoa New Zealand is taking a major leap forward, with the four largest banks, ANZ, ASB, BNZ and Westpac NZ, implementing another key industry standard that enables payments service providers and fintechs to offer new, more flexible payment options to their customers. Version 2.3 of the Payment Initiation API standard for open banking, developed by Payments NZ's API Centre, is due for implementation today, marking the third milestone under the industry's minimum open banking implementation plan. The most significant upgrade in this standard is the introduction of mandatory support for enduring payment consent – a critical function sought by the industry. Enduring payment consent allows customers to make repeat payments automatically from their own account through third-party services, authorised through their online banking app or portal. Customers can authorise payments to happen automatically under a set limit. If a charge comes through above the limit, a notification alerts the customer to review and approve the payment before it goes through. The API Centre is currently working with the four banks to confirm final implementation. Kiwibank is also on track to implement the standard ahead of a separate milestone date, at the end of May 2026. Phil Cass, Payments NZ's API Centre Manager, says the new standard is a 'game changer' that puts Aotearoa ahead of international peers in open banking. 'Having this latest version of the standard across our four biggest banks is a big step forward for industry participants who want to offer new and improved payments experiences for customers,' Cass says. 'We are proud of the API Centre's work and seeing the industry collaborate to deliver the latest payments initiation standard which reflects global best practice while being tailored to meet the needs of Aotearoa. 'This is a significant step forward that supports new innovation and makes world-class open banking a reality for New Zealanders,' Cass adds. The implementation milestone comes as MBIE prepares regulations for open banking under the Customer and Product Data Act, passed earlier this year. 'We see the Act as a positive step forward, and we're committed to working with MBIE to achieve a sustainable open banking ecosystem that finds the right balance between regulation and industry led ,' Cass says. 'Open banking is here, and customers are using it. We look forward to continuing to champion industry-led developments and building on the results it's delivering for Aotearoa.' The implementation milestone will feature in a broader API Centre celebration event in Auckland mid June, reflecting on six years of progress and highlighting what's next for open banking in Aotearoa under the emerging CPD framework. The event will also see the launch of Ngā Tohu Ārahi, the API Centre's Data Handling Guidelines – developed in partnership with Māori data experts and grounded in Māori Data Governance framework and principles. 'This is about more than a standard – it's about the evolution of an ecosystem,' says Cass. 'Together with banks, the wider industry, regulators and Māori data experts, we're helping shape the future of payments and data sharing in a way that reflects the values and priorities of Aotearoa.' For more information on open banking and the API Standards, please visit the API Centre website here. Note: What is open banking? Open banking is a system that lets customers safely share their financial data – like account balances and transaction history – with trusted third parties such as fintechs. It also enables customers to make payments directly from their bank accounts through these services. This is made possible through standardised Application Programming Interfaces (APIs), which act like secure digital bridges between banks and third parties. APIs allow different systems to talk to each other and exchange information in real time, within a safe, controlled environment. API standards are the backbone of open banking. They ensure that data is shared securely and transparently, with clear rules around customer consent, authentication, and privacy protection – putting customers in control of who can access their information and for what purpose. What is the payment initiation API standard? Jointly developed by the API Centre in collaboration with industry, the Payment Initiation API standard allows consumers to set up and make electronic payments by connecting directly and safely through a third party app or service to an API Provider, such as a bank. Instead of sharing login credentials, customers connect securely to their bank via an API – keeping their data private and the transaction protected. The four largest banks in Aotearoa – ANZ, ASB, BNZ and Westpac NZ – implemented version 2.1 of the standard ahead of an industry milestone set by Payments NZ in May last year, marking a major step forward in open banking readiness. What's new in the upgraded standard? Version 2.3 of the Payment Initiation API standard introduces several important upgrades that strengthen open banking capability and consistency across the ecosystem. For the first time, API Providers (banks) are required to support key functions that were previously optional – giving data requestors confidence that these features will be reliably available when integrating with banks. One of the most significant changes is the introduction of mandatory support for enduring payment consent. This allows customers to authorise repeat payments from their bank account to a third party under agreed limits – a potential modern alternative to direct debit, with greater transparency and control. Another major enhancement is mandatory support for decoupled authentication. This lets customers initiate an action on one device (like a laptop) and securely complete the payment authorisation on another (such as their banking app on a mobile phone), improving convenience and user experience. An overview of the v2.2 and v2.3 standards can be found here. Which third parties are using the payment initiation API? Five fintechs – BlinkPay, Qippay, Volley, Wych and Worldline – currently have contracts in place with one or more banks using either v2.1 or v2.3 of the standardised Payment Initiation API. There are a further 22 third parties registered with the API Centre who will be able to approach all four of the implementing banks to begin partnering discussions based on the v2.3 standard from 30 May onwards. What is the API Centre? Working with the industry (from banks to startups), Payments NZ's API Centre is co-designing the open banking future of Aotearoa, by creating the framework that will ensure fast, secure, user-friendly data sharing – for all New Zealanders. There are many open banking models around the world. Our framework creates a world-class foundation for businesses to provide leading, cost-effective products and services and give consumers confidence in how their data is accessed and shared. The API Centre is governed by an API Council made up of representatives from across the industry. The API Council fosters a self-governing API standards service, and all Council members are required to act in the best interests of the API Centre. What is the implementation plan? The API Centre first published its minimum open banking implementation plan in May 2023, and updated it in October 2024. It sets out timelines for the country's largest banks to be operationally and technically ready to partner using the API Centre's open banking standards. The Payments NZ Board and the API Council set the implementation plan after extensive industry consultation. Under the plan, ANZ, ASB, BNZ and Westpac NZ implemented the Payment Initiation v2.1 standard and Account Information v2.1 standard before deadlines in May and November 2024. These four banks have now implemented v2.3 of the Payment Initiation standard, and are due to implement v2.3 of the Account Information standard by 30 November this year. Kiwibank is also included in the plan, and has an implementation timeline to be live with the Payment Initiation and Account Information v2.3 standards in May and November 2026. About Payments NZ Payments NZ is the governance organisation at the centre of Aotearoa New Zealand's payments system. Established in 2010 with the endorsement of the Reserve Bank of New Zealand – Te Pūtea Matua, we manage and govern the country's core payments clearing and settlement systems to ensure they remain safe, efficient, interoperable, and fit for the future. We work in close partnership with industry to set the rules and standards that enable seamless payments between financial institutions, support API-enabled innovation through our API Centre, and lead strategic efforts to modernise and strengthen the payments ecosystem. In 2024, our systems processed over $8 trillion in retail and high-value payments. Our focus is on delivering world-class payments that support New Zealanders – today and for generations to come.
Scoop
29-05-2025
- Business
- Scoop
Another Milestone For Industry-Led Open Banking In Aotearoa New Zealand
Press Release – Payments NZ Version 2.3 of the Payment Initiation API standard for open banking, developed by Payments NZs API Centre, is due for implementation today, marking the third milestone under the industrys minimum open banking implementation plan. Open banking in Aotearoa New Zealand is taking a major leap forward, with the four largest banks, ANZ, ASB, BNZ and Westpac NZ, implementing another key industry standard that enables payments service providers and fintechs to offer new, more flexible payment options to their customers. Version 2.3 of the Payment Initiation API standard for open banking, developed by Payments NZ's API Centre, is due for implementation today, marking the third milestone under the industry's minimum open banking implementation plan. The most significant upgrade in this standard is the introduction of mandatory support for enduring payment consent – a critical function sought by the industry. Enduring payment consent allows customers to make repeat payments automatically from their own account through third-party services, authorised through their online banking app or portal. Customers can authorise payments to happen automatically under a set limit. If a charge comes through above the limit, a notification alerts the customer to review and approve the payment before it goes through. The API Centre is currently working with the four banks to confirm final implementation. Kiwibank is also on track to implement the standard ahead of a separate milestone date, at the end of May 2026. Phil Cass, Payments NZ's API Centre Manager, says the new standard is a 'game changer' that puts Aotearoa ahead of international peers in open banking. 'Having this latest version of the standard across our four biggest banks is a big step forward for industry participants who want to offer new and improved payments experiences for customers,' Cass says. 'We are proud of the API Centre's work and seeing the industry collaborate to deliver the latest payments initiation standard which reflects global best practice while being tailored to meet the needs of Aotearoa. 'This is a significant step forward that supports new innovation and makes world-class open banking a reality for New Zealanders,' Cass adds. The implementation milestone comes as MBIE prepares regulations for open banking under the Customer and Product Data Act, passed earlier this year. 'We see the Act as a positive step forward, and we're committed to working with MBIE to achieve a sustainable open banking ecosystem that finds the right balance between regulation and industry led ,' Cass says. 'Open banking is here, and customers are using it. We look forward to continuing to champion industry-led developments and building on the results it's delivering for Aotearoa.' The implementation milestone will feature in a broader API Centre celebration event in Auckland mid June, reflecting on six years of progress and highlighting what's next for open banking in Aotearoa under the emerging CPD framework. The event will also see the launch of Ngā Tohu Ārahi, the API Centre's Data Handling Guidelines – developed in partnership with Māori data experts and grounded in Māori Data Governance framework and principles. 'This is about more than a standard – it's about the evolution of an ecosystem,' says Cass. 'Together with banks, the wider industry, regulators and Māori data experts, we're helping shape the future of payments and data sharing in a way that reflects the values and priorities of Aotearoa.' For more information on open banking and the API Standards, please visit the API Centre website here. Note: What is open banking? Open banking is a system that lets customers safely share their financial data – like account balances and transaction history – with trusted third parties such as fintechs. It also enables customers to make payments directly from their bank accounts through these services. This is made possible through standardised Application Programming Interfaces (APIs), which act like secure digital bridges between banks and third parties. APIs allow different systems to talk to each other and exchange information in real time, within a safe, controlled environment. API standards are the backbone of open banking. They ensure that data is shared securely and transparently, with clear rules around customer consent, authentication, and privacy protection – putting customers in control of who can access their information and for what purpose. What is the payment initiation API standard? Jointly developed by the API Centre in collaboration with industry, the Payment Initiation API standard allows consumers to set up and make electronic payments by connecting directly and safely through a third party app or service to an API Provider, such as a bank. Instead of sharing login credentials, customers connect securely to their bank via an API – keeping their data private and the transaction protected. The four largest banks in Aotearoa – ANZ, ASB, BNZ and Westpac NZ – implemented version 2.1 of the standard ahead of an industry milestone set by Payments NZ in May last year, marking a major step forward in open banking readiness. What's new in the upgraded standard? Version 2.3 of the Payment Initiation API standard introduces several important upgrades that strengthen open banking capability and consistency across the ecosystem. For the first time, API Providers (banks) are required to support key functions that were previously optional – giving data requestors confidence that these features will be reliably available when integrating with banks. One of the most significant changes is the introduction of mandatory support for enduring payment consent. This allows customers to authorise repeat payments from their bank account to a third party under agreed limits – a potential modern alternative to direct debit, with greater transparency and control. Another major enhancement is mandatory support for decoupled authentication. This lets customers initiate an action on one device (like a laptop) and securely complete the payment authorisation on another (such as their banking app on a mobile phone), improving convenience and user experience. An overview of the v2.2 and v2.3 standards can be found here. Which third parties are using the payment initiation API? Five fintechs – BlinkPay, Qippay, Volley, Wych and Worldline – currently have contracts in place with one or more banks using either v2.1 or v2.3 of the standardised Payment Initiation API. There are a further 22 third parties registered with the API Centre who will be able to approach all four of the implementing banks to begin partnering discussions based on the v2.3 standard from 30 May onwards. What is the API Centre? Working with the industry (from banks to startups), Payments NZ's API Centre is co-designing the open banking future of Aotearoa, by creating the framework that will ensure fast, secure, user-friendly data sharing – for all New Zealanders. There are many open banking models around the world. Our framework creates a world-class foundation for businesses to provide leading, cost-effective products and services and give consumers confidence in how their data is accessed and shared. The API Centre is governed by an API Council made up of representatives from across the industry. The API Council fosters a self-governing API standards service, and all Council members are required to act in the best interests of the API Centre. What is the implementation plan? The API Centre first published its minimum open banking implementation plan in May 2023, and updated it in October 2024. It sets out timelines for the country's largest banks to be operationally and technically ready to partner using the API Centre's open banking standards. The Payments NZ Board and the API Council set the implementation plan after extensive industry consultation. Under the plan, ANZ, ASB, BNZ and Westpac NZ implemented the Payment Initiation v2.1 standard and Account Information v2.1 standard before deadlines in May and November 2024. These four banks have now implemented v2.3 of the Payment Initiation standard, and are due to implement v2.3 of the Account Information standard by 30 November this year. Kiwibank is also included in the plan, and has an implementation timeline to be live with the Payment Initiation and Account Information v2.3 standards in May and November 2026. About Payments NZ Payments NZ is the governance organisation at the centre of Aotearoa New Zealand's payments system. Established in 2010 with the endorsement of the Reserve Bank of New Zealand – Te Pūtea Matua, we manage and govern the country's core payments clearing and settlement systems to ensure they remain safe, efficient, interoperable, and fit for the future. We work in close partnership with industry to set the rules and standards that enable seamless payments between financial institutions, support API-enabled innovation through our API Centre, and lead strategic efforts to modernise and strengthen the payments ecosystem. In 2024, our systems processed over $8 trillion in retail and high-value payments. Our focus is on delivering world-class payments that support New Zealanders – today and for generations to come.
