Latest news with #APICentre
Techday NZ
16 hours ago
- Business
- Techday NZ
Open banking in New Zealand advances with NZD $13.77m spent
Payments NZ has released a report outlining six years of progress in open banking, highlighting industry delivery, collaboration and partnerships across New Zealand's open data ecosystem. The report, titled "Shaping Open Banking Together", reviews efforts and outcomes achieved by the sector since the establishment of the API Centre in 2019. Key metrics include the release of 25 open banking API standards, adoption by four major banks covering over 80% of customer accounts, and the engagement of more than 1,100 users in an API sandbox environment resulting in the development of 235 unique applications and over 13.7 million test calls. API standards and usage Since its inception, the API Centre has delivered six versions of API standards, with widespread implementation in the banking sector. Major financial institutions now support key open banking standards, facilitating secure and seamless access to banking services for a large proportion of New Zealanders. The API sandbox, supported by Glueware, has played a significant role in fostering innovation, with hundreds of community contributors involved in shaping the ecosystem. Community engagement has increased markedly, from just five contributors in 2019 to over 500 in the current year, and more than 11,000 working group hours have been logged by participants. Inclusive governance model The API Centre has adopted a governance model developed through industry collaboration. Over a dozen versions of the API Centre Terms and Conditions have been refined in consultation with banks, fintech firms, regulators and other stakeholders. This approach is described as being based on trust, inclusion and co-design. Collaboration has also extended to work with the Ministry of Business, Innovation and Employment (MBIE) on the Consumer Data Right (CPD) framework. Looking to the future, Payments NZ states that this inclusive and partnership-driven approach will continue as the industry transitions towards a regulated open banking environment. "We've built a world-class foundation for open banking in New Zealand – not through mandate, but through collective mahi. This report is a chance to pause, reflect, and acknowledge what we've achieved together," says Phil Cass, Manager of Payments NZ's API Centre. Financial investment and efficiency Payments NZ highlights that the open banking ecosystem has been established at a considerably lower cost compared with international efforts. The total investment over six years amounts to NZD $13.77 million, which represents approximately 5% of Australia's expenditure and 4% of that in the UK for similar sector initiatives. Phil Cass stated, "We now have upgraded, future-ready API standards being implemented by the major banks, new products hitting the market, and a strong platform for innovation. It's been a true partnership approach, and the outcomes speak for themselves." Cass noted that New Zealand's approach has allowed for progress without the need for regulatory compulsion, saying, "Our approach in Aotearoa is unique – open banking here has been shaped by cooperation, not compliance." He continued, "We've seen the cost of regulation in the UK and Australia, and in Aotearoa we have delivered a fully functioning ecosystem at a fraction of the cost." "We're carrying forward the same spirit of industry-led partnership and progress as we transition to a regulated environment for open banking." Data sovereignty and future focus The recent release also marked the launch of Ngā Tohu Ārahi, the new Data Handling Guidelines created in partnership with Nicholson Consulting. These guidelines are grounded in the principles of Māori Data Sovereignty and have implications for the design and management of data systems in the banking sector. Cass explained, "These guidelines are about more than compliance – they reflect our collective responsibility to design data systems with integrity and care." Preparations are underway for the formal designation of banks under New Zealand's CPD Act, expected in December 2025. Payments NZ believes the foundations laid through the API Centre will continue to support secure, innovative and inclusive banking solutions. "This is just the beginning," says Cass. "The next chapter of open banking will be even more impactful – and we're ready."
Scoop
30-05-2025
- Business
- Scoop
Another Milestone For Industry-Led Open Banking In Aotearoa New Zealand
Press Release – Payments NZ Open banking in Aotearoa New Zealand is taking a major leap forward, with the four largest banks, ANZ, ASB, BNZ and Westpac NZ, implementing another key industry standard that enables payments service providers and fintechs to offer new, more flexible payment options to their customers. Version 2.3 of the Payment Initiation API standard for open banking, developed by Payments NZ's API Centre, is due for implementation today, marking the third milestone under the industry's minimum open banking implementation plan. The most significant upgrade in this standard is the introduction of mandatory support for enduring payment consent – a critical function sought by the industry. Enduring payment consent allows customers to make repeat payments automatically from their own account through third-party services, authorised through their online banking app or portal. Customers can authorise payments to happen automatically under a set limit. If a charge comes through above the limit, a notification alerts the customer to review and approve the payment before it goes through. The API Centre is currently working with the four banks to confirm final implementation. Kiwibank is also on track to implement the standard ahead of a separate milestone date, at the end of May 2026. Phil Cass, Payments NZ's API Centre Manager, says the new standard is a 'game changer' that puts Aotearoa ahead of international peers in open banking. 'Having this latest version of the standard across our four biggest banks is a big step forward for industry participants who want to offer new and improved payments experiences for customers,' Cass says. 'We are proud of the API Centre's work and seeing the industry collaborate to deliver the latest payments initiation standard which reflects global best practice while being tailored to meet the needs of Aotearoa. 'This is a significant step forward that supports new innovation and makes world-class open banking a reality for New Zealanders,' Cass adds. The implementation milestone comes as MBIE prepares regulations for open banking under the Customer and Product Data Act, passed earlier this year. 'We see the Act as a positive step forward, and we're committed to working with MBIE to achieve a sustainable open banking ecosystem that finds the right balance between regulation and industry led ,' Cass says. 'Open banking is here, and customers are using it. We look forward to continuing to champion industry-led developments and building on the results it's delivering for Aotearoa.' The implementation milestone will feature in a broader API Centre celebration event in Auckland mid June, reflecting on six years of progress and highlighting what's next for open banking in Aotearoa under the emerging CPD framework. The event will also see the launch of Ngā Tohu Ārahi, the API Centre's Data Handling Guidelines – developed in partnership with Māori data experts and grounded in Māori Data Governance framework and principles. 'This is about more than a standard – it's about the evolution of an ecosystem,' says Cass. 'Together with banks, the wider industry, regulators and Māori data experts, we're helping shape the future of payments and data sharing in a way that reflects the values and priorities of Aotearoa.' For more information on open banking and the API Standards, please visit the API Centre website here. Note: What is open banking? Open banking is a system that lets customers safely share their financial data – like account balances and transaction history – with trusted third parties such as fintechs. It also enables customers to make payments directly from their bank accounts through these services. This is made possible through standardised Application Programming Interfaces (APIs), which act like secure digital bridges between banks and third parties. APIs allow different systems to talk to each other and exchange information in real time, within a safe, controlled environment. API standards are the backbone of open banking. They ensure that data is shared securely and transparently, with clear rules around customer consent, authentication, and privacy protection – putting customers in control of who can access their information and for what purpose. What is the payment initiation API standard? Jointly developed by the API Centre in collaboration with industry, the Payment Initiation API standard allows consumers to set up and make electronic payments by connecting directly and safely through a third party app or service to an API Provider, such as a bank. Instead of sharing login credentials, customers connect securely to their bank via an API – keeping their data private and the transaction protected. The four largest banks in Aotearoa – ANZ, ASB, BNZ and Westpac NZ – implemented version 2.1 of the standard ahead of an industry milestone set by Payments NZ in May last year, marking a major step forward in open banking readiness. What's new in the upgraded standard? Version 2.3 of the Payment Initiation API standard introduces several important upgrades that strengthen open banking capability and consistency across the ecosystem. For the first time, API Providers (banks) are required to support key functions that were previously optional – giving data requestors confidence that these features will be reliably available when integrating with banks. One of the most significant changes is the introduction of mandatory support for enduring payment consent. This allows customers to authorise repeat payments from their bank account to a third party under agreed limits – a potential modern alternative to direct debit, with greater transparency and control. Another major enhancement is mandatory support for decoupled authentication. This lets customers initiate an action on one device (like a laptop) and securely complete the payment authorisation on another (such as their banking app on a mobile phone), improving convenience and user experience. An overview of the v2.2 and v2.3 standards can be found here. Which third parties are using the payment initiation API? Five fintechs – BlinkPay, Qippay, Volley, Wych and Worldline – currently have contracts in place with one or more banks using either v2.1 or v2.3 of the standardised Payment Initiation API. There are a further 22 third parties registered with the API Centre who will be able to approach all four of the implementing banks to begin partnering discussions based on the v2.3 standard from 30 May onwards. What is the API Centre? Working with the industry (from banks to startups), Payments NZ's API Centre is co-designing the open banking future of Aotearoa, by creating the framework that will ensure fast, secure, user-friendly data sharing – for all New Zealanders. There are many open banking models around the world. Our framework creates a world-class foundation for businesses to provide leading, cost-effective products and services and give consumers confidence in how their data is accessed and shared. The API Centre is governed by an API Council made up of representatives from across the industry. The API Council fosters a self-governing API standards service, and all Council members are required to act in the best interests of the API Centre. What is the implementation plan? The API Centre first published its minimum open banking implementation plan in May 2023, and updated it in October 2024. It sets out timelines for the country's largest banks to be operationally and technically ready to partner using the API Centre's open banking standards. The Payments NZ Board and the API Council set the implementation plan after extensive industry consultation. Under the plan, ANZ, ASB, BNZ and Westpac NZ implemented the Payment Initiation v2.1 standard and Account Information v2.1 standard before deadlines in May and November 2024. These four banks have now implemented v2.3 of the Payment Initiation standard, and are due to implement v2.3 of the Account Information standard by 30 November this year. Kiwibank is also included in the plan, and has an implementation timeline to be live with the Payment Initiation and Account Information v2.3 standards in May and November 2026. About Payments NZ Payments NZ is the governance organisation at the centre of Aotearoa New Zealand's payments system. Established in 2010 with the endorsement of the Reserve Bank of New Zealand – Te Pūtea Matua, we manage and govern the country's core payments clearing and settlement systems to ensure they remain safe, efficient, interoperable, and fit for the future. We work in close partnership with industry to set the rules and standards that enable seamless payments between financial institutions, support API-enabled innovation through our API Centre, and lead strategic efforts to modernise and strengthen the payments ecosystem. In 2024, our systems processed over $8 trillion in retail and high-value payments. Our focus is on delivering world-class payments that support New Zealanders – today and for generations to come.
Scoop
29-05-2025
- Business
- Scoop
Another Milestone For Industry-Led Open Banking In Aotearoa New Zealand
Press Release – Payments NZ Version 2.3 of the Payment Initiation API standard for open banking, developed by Payments NZs API Centre, is due for implementation today, marking the third milestone under the industrys minimum open banking implementation plan. Open banking in Aotearoa New Zealand is taking a major leap forward, with the four largest banks, ANZ, ASB, BNZ and Westpac NZ, implementing another key industry standard that enables payments service providers and fintechs to offer new, more flexible payment options to their customers. Version 2.3 of the Payment Initiation API standard for open banking, developed by Payments NZ's API Centre, is due for implementation today, marking the third milestone under the industry's minimum open banking implementation plan. The most significant upgrade in this standard is the introduction of mandatory support for enduring payment consent – a critical function sought by the industry. Enduring payment consent allows customers to make repeat payments automatically from their own account through third-party services, authorised through their online banking app or portal. Customers can authorise payments to happen automatically under a set limit. If a charge comes through above the limit, a notification alerts the customer to review and approve the payment before it goes through. The API Centre is currently working with the four banks to confirm final implementation. Kiwibank is also on track to implement the standard ahead of a separate milestone date, at the end of May 2026. Phil Cass, Payments NZ's API Centre Manager, says the new standard is a 'game changer' that puts Aotearoa ahead of international peers in open banking. 'Having this latest version of the standard across our four biggest banks is a big step forward for industry participants who want to offer new and improved payments experiences for customers,' Cass says. 'We are proud of the API Centre's work and seeing the industry collaborate to deliver the latest payments initiation standard which reflects global best practice while being tailored to meet the needs of Aotearoa. 'This is a significant step forward that supports new innovation and makes world-class open banking a reality for New Zealanders,' Cass adds. The implementation milestone comes as MBIE prepares regulations for open banking under the Customer and Product Data Act, passed earlier this year. 'We see the Act as a positive step forward, and we're committed to working with MBIE to achieve a sustainable open banking ecosystem that finds the right balance between regulation and industry led ,' Cass says. 'Open banking is here, and customers are using it. We look forward to continuing to champion industry-led developments and building on the results it's delivering for Aotearoa.' The implementation milestone will feature in a broader API Centre celebration event in Auckland mid June, reflecting on six years of progress and highlighting what's next for open banking in Aotearoa under the emerging CPD framework. The event will also see the launch of Ngā Tohu Ārahi, the API Centre's Data Handling Guidelines – developed in partnership with Māori data experts and grounded in Māori Data Governance framework and principles. 'This is about more than a standard – it's about the evolution of an ecosystem,' says Cass. 'Together with banks, the wider industry, regulators and Māori data experts, we're helping shape the future of payments and data sharing in a way that reflects the values and priorities of Aotearoa.' For more information on open banking and the API Standards, please visit the API Centre website here. Note: What is open banking? Open banking is a system that lets customers safely share their financial data – like account balances and transaction history – with trusted third parties such as fintechs. It also enables customers to make payments directly from their bank accounts through these services. This is made possible through standardised Application Programming Interfaces (APIs), which act like secure digital bridges between banks and third parties. APIs allow different systems to talk to each other and exchange information in real time, within a safe, controlled environment. API standards are the backbone of open banking. They ensure that data is shared securely and transparently, with clear rules around customer consent, authentication, and privacy protection – putting customers in control of who can access their information and for what purpose. What is the payment initiation API standard? Jointly developed by the API Centre in collaboration with industry, the Payment Initiation API standard allows consumers to set up and make electronic payments by connecting directly and safely through a third party app or service to an API Provider, such as a bank. Instead of sharing login credentials, customers connect securely to their bank via an API – keeping their data private and the transaction protected. The four largest banks in Aotearoa – ANZ, ASB, BNZ and Westpac NZ – implemented version 2.1 of the standard ahead of an industry milestone set by Payments NZ in May last year, marking a major step forward in open banking readiness. What's new in the upgraded standard? Version 2.3 of the Payment Initiation API standard introduces several important upgrades that strengthen open banking capability and consistency across the ecosystem. For the first time, API Providers (banks) are required to support key functions that were previously optional – giving data requestors confidence that these features will be reliably available when integrating with banks. One of the most significant changes is the introduction of mandatory support for enduring payment consent. This allows customers to authorise repeat payments from their bank account to a third party under agreed limits – a potential modern alternative to direct debit, with greater transparency and control. Another major enhancement is mandatory support for decoupled authentication. This lets customers initiate an action on one device (like a laptop) and securely complete the payment authorisation on another (such as their banking app on a mobile phone), improving convenience and user experience. An overview of the v2.2 and v2.3 standards can be found here. Which third parties are using the payment initiation API? Five fintechs – BlinkPay, Qippay, Volley, Wych and Worldline – currently have contracts in place with one or more banks using either v2.1 or v2.3 of the standardised Payment Initiation API. There are a further 22 third parties registered with the API Centre who will be able to approach all four of the implementing banks to begin partnering discussions based on the v2.3 standard from 30 May onwards. What is the API Centre? Working with the industry (from banks to startups), Payments NZ's API Centre is co-designing the open banking future of Aotearoa, by creating the framework that will ensure fast, secure, user-friendly data sharing – for all New Zealanders. There are many open banking models around the world. Our framework creates a world-class foundation for businesses to provide leading, cost-effective products and services and give consumers confidence in how their data is accessed and shared. The API Centre is governed by an API Council made up of representatives from across the industry. The API Council fosters a self-governing API standards service, and all Council members are required to act in the best interests of the API Centre. What is the implementation plan? The API Centre first published its minimum open banking implementation plan in May 2023, and updated it in October 2024. It sets out timelines for the country's largest banks to be operationally and technically ready to partner using the API Centre's open banking standards. The Payments NZ Board and the API Council set the implementation plan after extensive industry consultation. Under the plan, ANZ, ASB, BNZ and Westpac NZ implemented the Payment Initiation v2.1 standard and Account Information v2.1 standard before deadlines in May and November 2024. These four banks have now implemented v2.3 of the Payment Initiation standard, and are due to implement v2.3 of the Account Information standard by 30 November this year. Kiwibank is also included in the plan, and has an implementation timeline to be live with the Payment Initiation and Account Information v2.3 standards in May and November 2026. About Payments NZ Payments NZ is the governance organisation at the centre of Aotearoa New Zealand's payments system. Established in 2010 with the endorsement of the Reserve Bank of New Zealand – Te Pūtea Matua, we manage and govern the country's core payments clearing and settlement systems to ensure they remain safe, efficient, interoperable, and fit for the future. We work in close partnership with industry to set the rules and standards that enable seamless payments between financial institutions, support API-enabled innovation through our API Centre, and lead strategic efforts to modernise and strengthen the payments ecosystem. In 2024, our systems processed over $8 trillion in retail and high-value payments. Our focus is on delivering world-class payments that support New Zealanders – today and for generations to come.
Scoop
29-05-2025
- Business
- Scoop
Another Milestone For Industry-Led Open Banking In Aotearoa New Zealand
Open banking in Aotearoa New Zealand is taking a major leap forward, with the four largest banks, ANZ, ASB, BNZ and Westpac NZ, implementing another key industry standard that enables payments service providers and fintechs to offer new, more flexible payment options to their customers. Version 2.3 of the Payment Initiation API standard for open banking, developed by Payments NZ's API Centre, is due for implementation today, marking the third milestone under the industry's minimum open banking implementation plan. The most significant upgrade in this standard is the introduction of mandatory support for enduring payment consent – a critical function sought by the industry. Enduring payment consent allows customers to make repeat payments automatically from their own account through third-party services, authorised through their online banking app or portal. Customers can authorise payments to happen automatically under a set limit. If a charge comes through above the limit, a notification alerts the customer to review and approve the payment before it goes through. The API Centre is currently working with the four banks to confirm final implementation. Kiwibank is also on track to implement the standard ahead of a separate milestone date, at the end of May 2026. Phil Cass, Payments NZ's API Centre Manager, says the new standard is a 'game changer' that puts Aotearoa ahead of international peers in open banking. 'Having this latest version of the standard across our four biggest banks is a big step forward for industry participants who want to offer new and improved payments experiences for customers,' Cass says. 'We are proud of the API Centre's work and seeing the industry collaborate to deliver the latest payments initiation standard which reflects global best practice while being tailored to meet the needs of Aotearoa. 'This is a significant step forward that supports new innovation and makes world-class open banking a reality for New Zealanders,' Cass adds. The implementation milestone comes as MBIE prepares regulations for open banking under the Customer and Product Data Act, passed earlier this year. 'We see the Act as a positive step forward, and we're committed to working with MBIE to achieve a sustainable open banking ecosystem that finds the right balance between regulation and industry led ,' Cass says. 'Open banking is here, and customers are using it. We look forward to continuing to champion industry-led developments and building on the results it's delivering for Aotearoa.' The implementation milestone will feature in a broader API Centre celebration event in Auckland mid June, reflecting on six years of progress and highlighting what's next for open banking in Aotearoa under the emerging CPD framework. The event will also see the launch of Ngā Tohu Ārahi, the API Centre's Data Handling Guidelines – developed in partnership with Māori data experts and grounded in Māori Data Governance framework and principles. 'This is about more than a standard – it's about the evolution of an ecosystem,' says Cass. 'Together with banks, the wider industry, regulators and Māori data experts, we're helping shape the future of payments and data sharing in a way that reflects the values and priorities of Aotearoa.' For more information on open banking and the API Standards, please visit the API Centre website here. Note: What is open banking? Open banking is a system that lets customers safely share their financial data – like account balances and transaction history – with trusted third parties such as fintechs. It also enables customers to make payments directly from their bank accounts through these services. This is made possible through standardised Application Programming Interfaces (APIs), which act like secure digital bridges between banks and third parties. APIs allow different systems to talk to each other and exchange information in real time, within a safe, controlled environment. API standards are the backbone of open banking. They ensure that data is shared securely and transparently, with clear rules around customer consent, authentication, and privacy protection – putting customers in control of who can access their information and for what purpose. What is the payment initiation API standard? Jointly developed by the API Centre in collaboration with industry, the Payment Initiation API standard allows consumers to set up and make electronic payments by connecting directly and safely through a third party app or service to an API Provider, such as a bank. Instead of sharing login credentials, customers connect securely to their bank via an API – keeping their data private and the transaction protected. The four largest banks in Aotearoa – ANZ, ASB, BNZ and Westpac NZ – implemented version 2.1 of the standard ahead of an industry milestone set by Payments NZ in May last year, marking a major step forward in open banking readiness. What's new in the upgraded standard? Version 2.3 of the Payment Initiation API standard introduces several important upgrades that strengthen open banking capability and consistency across the ecosystem. For the first time, API Providers (banks) are required to support key functions that were previously optional – giving data requestors confidence that these features will be reliably available when integrating with banks. One of the most significant changes is the introduction of mandatory support for enduring payment consent. This allows customers to authorise repeat payments from their bank account to a third party under agreed limits – a potential modern alternative to direct debit, with greater transparency and control. Another major enhancement is mandatory support for decoupled authentication. This lets customers initiate an action on one device (like a laptop) and securely complete the payment authorisation on another (such as their banking app on a mobile phone), improving convenience and user experience. An overview of the v2.2 and v2.3 standards can be found here. Which third parties are using the payment initiation API? Five fintechs – BlinkPay, Qippay, Volley, Wych and Worldline – currently have contracts in place with one or more banks using either v2.1 or v2.3 of the standardised Payment Initiation API. There are a further 22 third parties registered with the API Centre who will be able to approach all four of the implementing banks to begin partnering discussions based on the v2.3 standard from 30 May onwards. What is the API Centre? Working with the industry (from banks to startups), Payments NZ's API Centre is co-designing the open banking future of Aotearoa, by creating the framework that will ensure fast, secure, user-friendly data sharing – for all New Zealanders. There are many open banking models around the world. Our framework creates a world-class foundation for businesses to provide leading, cost-effective products and services and give consumers confidence in how their data is accessed and shared. The API Centre is governed by an API Council made up of representatives from across the industry. The API Council fosters a self-governing API standards service, and all Council members are required to act in the best interests of the API Centre. What is the implementation plan? The API Centre first published its minimum open banking implementation plan in May 2023, and updated it in October 2024. It sets out timelines for the country's largest banks to be operationally and technically ready to partner using the API Centre's open banking standards. The Payments NZ Board and the API Council set the implementation plan after extensive industry consultation. Under the plan, ANZ, ASB, BNZ and Westpac NZ implemented the Payment Initiation v2.1 standard and Account Information v2.1 standard before deadlines in May and November 2024. These four banks have now implemented v2.3 of the Payment Initiation standard, and are due to implement v2.3 of the Account Information standard by 30 November this year. Kiwibank is also included in the plan, and has an implementation timeline to be live with the Payment Initiation and Account Information v2.3 standards in May and November 2026. About Payments NZ Payments NZ is the governance organisation at the centre of Aotearoa New Zealand's payments system. Established in 2010 with the endorsement of the Reserve Bank of New Zealand – Te Pūtea Matua, we manage and govern the country's core payments clearing and settlement systems to ensure they remain safe, efficient, interoperable, and fit for the future. We work in close partnership with industry to set the rules and standards that enable seamless payments between financial institutions, support API-enabled innovation through our API Centre, and lead strategic efforts to modernise and strengthen the payments ecosystem. In 2024, our systems processed over $8 trillion in retail and high-value payments. Our focus is on delivering world-class payments that support New Zealanders – today and for generations to come.
