Next generation payments

Our vision is to deliver world-class payments for Aotearoa by building a right-sized, modular, future-proofed payments ecosystem.

A cornerstone of many modernisation efforts is the transition to next generation real-time payment capabilities, which support a broader range of functionality, including simple verification, payee identifiers, rich data, improved fraud solutions, greater payment choices and cross-border payment corridors. 

In 2020, our Payments Modernisation Plan (PMP) set out the capability building blocks required to modernise the payments system in Aotearoa. We have since worked with the industry to develop a recommended approach to deliver a next generation payments ecosystem, grounded in real-time capability, for Aotearoa.

Our approach has been informed by expert insights from payment associations and vendors around the world that have already implemented real-time capability. A key focus of our dialogue with stakeholders involved which services should be enabled, and in what order, to ensure early use and to drive growth.

Being able to pay and be paid in real time, with all the additional services an innovative platform brings, is an essential building block for payments modernisation in Aotearoa.

What have we been working on?

In the first half of 2023 our focus was on developing an initial foundational design and completing stakeholder engagement to seek feedback and input into the design. To date, we have:

• Developed a foundational design for discussion and refinement with industry stakeholders.​
• Completed initial engagement with stakeholders on the foundational design.​
• Completed the drafts of Chapter 1 and 2 of an Industry Strategic Investment Case (ISIC)​.
• Constructed an initial model which considers how payments could move to a new system over time.​

Industry Strategic Investment Case

The key deliverable for the programme is an Industry Strategic Investment Case (ISIC). The ISIC sets out the case for change and presents an initial design, grounded in next generation real-time payments capability, that can act as a key foundational component of a wider strategic payments modernisation programme, as envisaged by the 2020 Payments Modernisation Plan.

ISIC Chapter 1: Setting the scene for next generation capability

Chapter 1 of the ISIC discusses payments modernisation developments globally and details the overarching benefits of a next generation payments ecosystem for Aotearoa and the reasons why investment in this space is critical.

Read a summary of Chapter 1

ISIC Chapter 2: Foundational ecosystem design

Chapter 2 of the ISIC presents an initial foundational ecosystem design. The design reflects our work to understand the evolution of real-time platforms and the drivers for modernisation, while also drawing on the results of our engagement with industry stakeholders.

Read a summary of Chapter 2

What are we working on next?

The Payments NZ Board has tasked us with the delivery of a series of workstreams which will provide the industry with the information required to be decision-ready in relation to next generation payments capability by March 2024. These workstreams focus on Ecosystem design, Governance and Engagement.

The information from these workstreams will enable us to refine the design and understand how the sequencing of next generation capabilities should be delivered.

Part of this sequencing activity will involve considering how we can leverage the modularity of a next generation system to prioritise the delivery of enhanced customer protections capabilities, such as real-time fraud prevention, payee identification, improved consent and authentication management and digital identity.

This will also enable us to produce an expected timeline for the delivery of capabilities.

As part of this phase of activity, we will develop Chapter 3 of the ISIC which will navigate governance and ownership considerations as well as refining high-level scope, prioritisation, financial modelling and participant readiness considerations.

To learn more about what we’ll be working on next, read our October 2023 programme update here.

Stay informed

Regular updates will be provided via our website and existing Payments NZ channels as this work progresses. If you’re interested in being kept informed, please join our mailing list for news and updates.

Want to know more?

Click here for frequently asked questions.