Reserve Bank Seeks Submissions on Retail Payments System Overhaul
New Zealand's outdated retail payments system could be given a significant boost if modernised, according to the Reserve Bank. The bank has released an issues paper outlining potential changes, which suggests that overhauling the current system could add up to $1.3 billion to the economy each year.
The Reserve Bank estimates that around $2 trillion of retail payments flow between New Zealand banks annually. Given this scale, even small improvements can have a significant impact on national productivity and innovation, as well as global competitiveness and economic resilience.
Currently, New Zealand's payment system relies heavily on legacy platforms, which are restricting competition and innovation. The system also lacks modern features seen in other countries, such as instant payments, request-to-pay, and QR codes. Reform could provide better protection against scams and fraud, as well as increased convenience and choice for consumers.
The Reserve Bank will now seek submissions on possible changes to the system, including technical and platform requirements needed to modernise the payments infrastructure. The bank is working with the finance minister to support this work and will be inviting stakeholders to provide input on the issues paper.