Consultation on payments for the next generation now underway

Media release

Payments NZ is seeking feedback on potential future payments capability that could power Aotearoa New Zealand’s move to a digital economy and enable New Zealanders to send and receive money in fast, secure, and innovative ways. 

The industry-led organisation has today released its Consultation on payments for the next generation, with the full consultation paper available online here.

Payments NZ chief executive Steve Wiggins says a ‘next generation’ digital payments system would be a long-term investment in national economic infrastructure, benefiting households, businesses, and the economy. 

“After initial planning, we’re now moving to an open consultation phase to ensure all views and perspectives are heard and considered before the initiative is developed further,” says Wiggins.  

“We have a well-considered view of what this payments system could look like. However, this stage of work is about challenge, debate and hearing new possibilities. 

“This year there has been an explosion in discussion about the future of payments, including proposals around digital cash, a renewed focus on digital identity, signalled changes to retail payments and the ongoing passage of consumer data right legislation. 

“With so many moving pieces, we want to check in on the next generation payments infrastructure we have in mind, and capture opportunities to link other workstreams and activities together based on the view of industry, regulators and wider stakeholders across Aotearoa.” 

Wiggins says next generation digital payment systems are typically characterised by data-rich user experiences, enhanced end-to-end security and real-time payments capabilities.  

“We want to work with industry and key stakeholders to define what features should be included, how and when they should come on stream.  

“But, as general guidance, overseas examples of features include things like AI-powered fraud detection, instant notification of payments, data-driven information to help inform decisions, integrated reward schemes and useful business invoicing tools like request-to-pay. 

“It’s a massive opportunity. We think a next generation digital payments system could transform user experiences in the same way broadband did when it replaced the dial-up network.”  

Payments NZ chief strategy and innovation officer Jane-Renee Retimana says current payment systems are safe and reliable – transacting more than $7 trillion a year – but won’t be able to serve all long-term economic and social needs.  

“We know change is necessary because future needs will take us beyond what our existing payments infrastructure can deliver.” 

She says banks, payment companies, and a growing wave of fintechs and start-ups would be able to use the new infrastructure to create innovative, digital, data-rich solutions for consumers and businesses.  

“Over time rolling out digital first payments capabilities and infrastructure will help foster more innovation and new digital solutions that ultimately can be designed, deployed, and updated at a much faster rate and at a lower relative cost, including in retail settings.” 

Retimana says Payments NZ supports the regulator’s view that industry is best placed to take a leadership role and focus on moving forward with these types of modernisation opportunities.   

“Over the next six months we will be consulting widely. As well as talking to industry stakeholders and regulators, we will also want to hear from the wider business sector, Māori and community groups and other interested New Zealanders about their needs.” 

Timeframes for the roll out of any next generation system will be determined based on consultation feedback on the proposed capabilities, roadmap prioritisation, sequencing and investment.  

For more information on our next generation payments initiative, including our consultation paper, consultation approach and frequently asked questions, visit our Next Generation Payments webpage.  

Click here to download Consultation on payments for the next generation. 

Click here for the consultation questions document.

Click here to provide your feedback.

You can also sign up to stay informed on our next generation payments work.