Source: Reserve Bank of New Zealand
18 August 2026
We are seeking feedback on the issues we have identified with our
payments system, and the proposed areas of work needed to address these.
Assistant Governor Karen Silk says payment systems are core economic
infrastructure and enable everyday transactions across the economy.
Around $2 trillion of retail payments flow between New Zealand banks
annually. Given the scale of payments systems, even small improvements
in their efficiency can lift national productivity, enhance the global
competitiveness of local businesses, and strengthen our economic
resilience. Conversely, an outdated system can constrain economic
growth.
“New Zealand’s retail payments system is operationally reliable, but is
outdated, and does not meet international best practice for modern,
faster retail payment systems. We have fallen behind global standards,
with outdated infrastructure, limited modern payment capabilities, and
insufficient innovation,” Ms Silk says.
The Minister of Finance has endorsed the Reserve Bank to lead the
delivery of a strategy for payments modernisation in New Zealand, in
coordination with key agencies and industry participants. This reflects
the close alignment between payment system outcomes and RBNZ’s monetary
and financial stability mandates, settlement operations, and our wider
central bank policy interests.
We have set up 2 workstreams to progress payments modernisation:
* The first workstream will examine the technical requirements needed
to modernise payments infrastructure and will inform the development of
future options.
* A separate workstream focuses on reforming strategic leadership,
regulatory coordination and system governance, across the retail
payments system.
Key strategic questions include whether to continue pursuing incremental
reform or to undertake structural modernisation of the underlying
payments infrastructure to build long-term capability and strengthen
resilience.
A close working relationship with industry will be fundamental to the
success of this initiative, Ms Silk says.
“We cannot do this alone and, in partnership with other government
agencies, are committed to working closely with businesses, the payments
industry and other interested stakeholders to shape the future direction
for New Zealand’s payments system and meet broader public interest
objectives.”
The Issues Paper consultation will be open for 10 weeks. Feedback is
welcomed from all those with an interest in the future of the payments
system until 27 October 2026.
“Following the Issues Paper consultation, we will analyse submissions
and provide Ministers with advice on options for future work and reform.
We expect this to be completed in the first half of next year,” Ms Silk
says.
A proposed roadmap and business case will be developed in addition to
the options paper. Proposed roles and responsibilities, and payments
modernisation policy options will be subject to a subsequent public
consultation as part of the policy development process, including cost
benefit analysis.
MORE INFORMATION
* Modernising New Zealand’s retail payment system (PDF, 779 KB): https://www.rbnz.govt.nz/-/media/project/sites/rbnz/files/consultations/future-of-money/modernising-new-zealands-retail-payment-system.pdf
* Have your say on the future of payments: https://www.rbnz.govt.nz/money-and-cash/payments/have-your-say-on-the-future-of-payments
PAYMENTS MODERNISATION WEBINAR
We will be hosting a public webinar at 11am on Monday 24 August to
discuss our issues paper with RBNZ policy staff. Please let us know if
you are interested in attending by emailing Future of Money and
Payments.