Statement on Commerce Commission’s update on payments between bank accounts
22 Feb 2024
We welcome today’s update from the Commerce Commission on its Payments Between Bank Accounts work.
The Commission’s vision of an innovative open banking system aligns with our goals at Payments NZ. We want to foster a payments ecosystem where consumers and businesses have more choice and access to secure, fast and convenient payment options.
We’re committed to accelerating open banking in Aotearoa New Zealand, including through the ongoing development of API Standards. Our API Centre released the latest version of its standards last month. We’re also working towards a milestone in May, when the four largest banks are required to be ready to partner using our v2.1 Payment Initiation API Standard.
To deliver open banking solutions effectively, banks and third parties need to be able to partner easily. That’s why we’re seeking authorisation from the Commission to work with open banking stakeholders on the development of a clear, consistent and transparent partnering system in our API Centre for banks and third parties. The Commission is currently considering our application.
One of our fundamental goals through our API Centre is to enable banks and third parties to get a wider range of innovative open banking solutions into the hands of consumers. We shared our overall vision for open banking in a whitepaper released in November. We believe industry co-ordination through the API Centre, coupled with right-sized consumer data regulation, can speed up the development of the open banking ecosystem which benefits New Zealanders.
Looking further ahead, payments innovation sits at the heart of the foundational design of a next generation payments system which we have been progressing with industry. We’re on track to share more information with stakeholders on this work in coming months.
The Commission’s update also sets out a range of expectations for Payments NZ and the API Centre on innovation in interbank payments. This gives useful clarity on what the Commission expects to see from us, as we work to deliver world class payments for Aotearoa.
Steve Wiggins
Chief Executive, Payments NZ