RBNZ Slams NZ Payments System as 'Ancient' and 'Scrap Metal with Blinking Lights'

The Reserve Bank of New Zealand (RBNZ) has estimated that modernizing the country's retail payments system could boost the economy by up to $1.3 billion a year.

According to a report released on August 18, the current system is reliable but increasingly falling behind global standards. The RBNZ found that even marginal improvements in payment processing would have significant economic benefits due to the massive volume of transactions involved - around $2 trillion per year.

The report's verdict was blunt: while New Zealand's payments system may be reliable, it is not fit for purpose and urgently needs modernization. Kent Duston, convenor of the Banking Reform Coalition, described the technology underpinning the system as 'scrap metal with blinking lights', highlighting its ancient nature.