Name
Global FinTech Guide
Country _ Name
New Zealand
SectionTitle
Payment services
Body
FinTechs belonging to this category offer alternative payment services which are supposed to provide a faster and cheaper way for national, European, and international payments for private and business customers by using new technologies.

For example, payment service providers hereby offer solutions to easily integrate several payment services in online shops.

Some FinTechs furthermore provide real cash register systems and online-reservation solutions for restaurants and shops providing their own payment services or making use of the payment services of FinTechs described above.


Introduction

Attitude of the country towards modern payment services

New Zealand has one of the lowest amounts of cash circulation in the world and is moving even further away from cash and towards more modern payment methods. Innovation in this area is being embraced by The Reserve Bank of New Zealand (RBNZ) which sees FinTech as a means of exploring the promotion of a 'sound, efficient and dynamic monetary and financial system'. In 2024, RBNZ completed its largest-ever public consultation on Digital Cash. The consultation explored the potential introduction of a central bank digital currency, including options such as digital wallets and payment cards. While there was strong interest, some feedback raised concerns about privacy, government control, and the importance of maintaining access to physical cash. RBNZ has committed to addressing these issues through a privacy-focused design and continued engagement with the public as it prepares a business case for government consideration by 2026.

Although the use of cash is declining it continues to play a significant role, particularly for vulnerable communities and in emergency situations. In its most recently published (June 2025) survey on cash use in New Zealand, RBNZ found that 45.8% of respondents stated they were still using cash but varied as to their frequency of cash use, with less than 3% of respondents having used cash more than 11 times in the week preceding the survey.  In contrast, 79.1% of respondents stated they use EFTPOS and debit card-based methods, and 40% used credit cards. Other RBNZ data shows that respondents who used cash as a payment method generally reduced by 25% from 2017 to 2020.

Feedback on these figures suggests that COVID-19 has had a major influence on New Zealanders’ preferred payment methods. Reservations rest mostly with the minority who still prefer cash and are concerned that their ability to pay for goods and services with cash will be diminished. Despite this, majority of those who prefer to use cash stated they are able to use it at their preferred shops either always or most of the time.

However, in July 2025 one of NZ’s political parties introduced a Member’s Bill that would protect New Zealanders’ ability to use cash, showing that the use of cash remains a political issue. 
Overall, the trend in New Zealand's preferred payment methods is moving away from cash and towards contactless payment methods.


Legal affairs

Obligations and requirements to provide payment services or ancillary services described above
Payment services are regulated by RBNZ in accordance with the Reserve Bank of New Zealand Act 2021.There is no requirement for providers of payment services to have a specific licence relating to those services. Providers will, however, need to register as a Financial Service Provider under the Financial Service Providers (Registration and Dispute Resolution) Act 2008 (FSPA). It costs $935 (plus GST) to register and an annual confirmation must be made every year thereafter which incurs a $75 (plus GST) fee and an FMA levy, which varies depending on how many classes of financial services are provided by that entity.

Additional comments regarding the legal situation for payment services or what FinTech’s must be aware of in this business area

The Retail Payment System Act 2022 (RPSA) provides the New Zealand Commerce Commission (Commerce Commission) remit to monitor competition and efficiency in the retail payment system and regulate designated retail payment networks. The RPSA also provides the Commerce Commission with functions and powers to issue network and merchant surcharge standards, including the regulation of fees charged by merchants for payment services such as payment surcharges. This is to ensure the payment surcharge for payment services are no more than the cost to the merchant of the payment services used for accepting retail payments.

The RSPA sets out the initial pricing standard (IPS) that applies to each initial designated network, being Mastercard or Visa credit and debit networks. The RPSA reduces interchange fees, which is the fee intended to cover the costs associated with accepting, processing and authorising certain transactions (such as credit card transactions, contactless, online and international scheme debit transactions). The interchange fees have been capped since November 2022 at 0.00% per transaction for any contact debit payment method, 0.20% per transaction or a $0.05 flat fee for any contactless debit payment method, and 0.60% per transaction for any online debit payment method. For credit card transactions, a cap of 0.80% per transaction applies across all methods (contact, contactless, and online).  By capping the interchange fees, the IPS is intended to reduce costs to merchants. The Commerce Commission released a draft decision in December 2024 proposing significantly lower caps across additional card types, with a final decision expected in mid-2025 and implementation anticipated from 1 November 2025.

The Digital Services and Consumer Data Rights Act 2025 (DSCDR Act) marks a shift toward open banking.  The DSCDR Act provides a legal framework for the implementation of consumer data rights (CDR). MBIE is overseeing the rollout of CDR with banking designated as the first sector. Major banks have begun compliance trials with customer data sharing protocols expected to become mandatory by late 2025 to early 2026. FinTech providers planning to integrate open banking functionality will need to meet new accreditation standards under the CDR Accreditation Framework (expected to be published in 2025).


Economic conditions

Market size for payment services and biggest payment service providers
Payment services in New Zealand are largely managed by the RBNZ backed company Payments NZ Limited, which is a governance organisation that manages New Zealand's three (3) core payment clearing systems. Payments NZ's shareholders consist of eight (8) of the 27 registered banks in New Zealand (including ANZ, ASB, BNZ, Kiwibank and Westpac). The systems Payments NZ manages transact over $7 trillion annually.
Other providers include the NZX listed Smartpay Holdings. There is insufficient publicly available information in relation to market share.

Additional comments regarding the economic situation for payment services or what FinTech’s must be aware of in this business area

N/A

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