Modernising our payment system
We have an interest in seeing our payments system become more competitive and efficient to transform the system and enable new ways to pay.
Payments modernisation should support a more competitive market structure through open and fair access to underpinning digital infrastructure. Equitable access will enable new alternative payment methods to emerge. Modernisation should also improve the resilience of our payments system, reducing reliance on a small number of dominant providers.
Businesses and customers benefit from improved competition and innovation through a greater choice of products and services, more transparent pricing and downward pressure on costs.
Given that payment modernisation developments often require different parties to work together, we have a role in helping to facilitate necessary coordination and we keep an eye out for conduct or barriers that impede a more competitive market.
We also work alongside other Government bodies, like the Ministry of Business, Innovation and Employment, and the Reserve Bank of New Zealand, to support their work in modernising the payment system.
Open banking
Open banking can provide consumers with new, innovative and convenient ways to make use of their banking data through products and services offered by accredited open banking providers.
Open banking promises to deliver greater competition in banking and payments and genuine innovation through new products and services. As the competition regulator we want to ensure this promise is delivered on, and all New Zealanders enjoy the benefits.
Our interest is in seeing widespread adoption of open banking and open banking payment providers competing with a small number of dominant payment networks, which we believe will reduce costs for businesses and consumers.
We're working with the Ministry of Business, Innovation and Employmentopen_in_new, who are responsible for the Consumer Data Right, which is a crucial tool in enabling open banking. We continue to have ongoing involvement on issues hampering delivery or advancement of open banking including working with accredited open banking providers, banks and other critical participants in the payments system to ensure the uptake of open banking is successful.
Next generation payments
We’re taking part in the work led by the Reserve Bank of New Zealand to modernise the payment system.
We believe modernising the payment system is key to unlocking a more competitive and efficient payment system that delivers for New Zealand businesses and customers.
Modernisation should drive better outcomes across the system: more choice, better functionality and security, flexibility to adapt to new and innovative payment methods, and lower costs for both businesses and customers. We see modernisation as a cornerstone of the future of payments in New Zealand.
With our depth of experience, we are well placed to support and influence this cross-sector initiative alongside the Reserve Bank, the Treasury, the Ministry for Business, Innovation and Employment, the Department of Internal Affairs, the Financial Markets Authority and the Public Service Commission.