Reserve Bank of New Zealand initiates payments system modernisation

The Reserve Bank of New Zealand (RBNZ) has launched an initiative to modernise the nation’s retail payments system following endorsement from the Minister of Finance. Assistant Governor Karen Silk noted that while the current system is operationally reliable, it is outdated and fails to meet international best practices regarding speed, infrastructure, and innovation.

With approximately $2 trillion in retail payments flowing between New Zealand banks annually, the RBNZ aims to improve efficiency to boost national productivity and economic resilience. The project is organized into two primary workstreams: one to examine the technical requirements for modernising infrastructure, and another to reform strategic leadership, regulatory coordination, and system governance.

The RBNZ is currently seeking feedback on identified issues and proposed areas of work to determine whether the country should pursue incremental reforms or undertake a structural modernisation of its underlying payments infrastructure.