Modernising retail payments system could boost economy by up to $1.3 billion a year - RBNZ
It said reform of the system could benefit consumers by providing access to modern features such as instant payments, request-to-pay and QR codes.
A Reserve Bank report suggests that modernising New Zealand's retail payments system could potentially boost the economy by up to $1.3 billion annually. The bank released an issues paper detailing the potential economic benefits, which include enhanced productivity, innovation, and global competitiveness. The current payment systems consist of EFTPOS, debit cards, credit cards, and bank transfers.
While the system remains reliable, it lags behind global standards and suffers from structural issues that hinder further modernisation. The issues paper highlights the need for reform to provide consumers with convenience, choice of payment methods, and access to modern features such as instant payments, request-to-pay, and QR codes.
Furthermore, the reform could offer better protection against scams and fraud. Performance and capability gaps, competition and innovation restrictions, lack of modern features, and a lack of domestic payment system pose risks to the country's economic resilience. The bank aims to gather submissions on potential changes to the system, including technical and platform requirements and leadership changes across the sector.
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