Category: open banking

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BNZ and BlinkPay to accelerate open banking in New Zealand

Source: BNZ statements

BNZ today announced it has joined forces with leading New Zealand open banking fintech BlinkPay.

The investment will enable BlinkPay to accelerate and scale its innovation and product development through access to BNZ’s resources and expertise.

With BNZ as BlinkPay’s new owner, co-founder Adrian Smith becomes the fintech’s CEO, ensuring BlinkPay retains its own leadership and decision-making, along with its entrepreneurial spirit and startup culture.

“As a Māori-led business, we bring unique perspective to financial innovation. BNZ understands and values this – and they’re backing our vision while enabling us to retain our startup DNA,” Smith says.

“Our kaupapa has always been about making financial services work better for all New Zealanders. BNZ’s support gives us the resources to accelerate our mission and help grow the open banking ecosystem across Aotearoa.”

BNZ CEO Dan Huggins says the investment builds on BNZ’s established leadership in open banking.

“BNZ has been at the forefront of open banking in New Zealand since 2018, with more than 250,000 customers already benefiting from innovative financial services enabled by BNZ’s open banking technology.

“This represents the next phase in our journey. With BNZ supporting BlinkPay’s innovation and agility, we can accelerate the development of new products and services that will benefit all New Zealanders.

“We’re proud to be investing in a team that has proven their ability to innovate and deliver.”The partnership will focus on developing new open banking capabilities that improve financial outcomes for consumers and businesses across Aotearoa New Zealand.

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New app set to slash merchant payment fees and transform how NZers manage their money

Source: BNZ statements

Imagine running a bustling café where every transaction not only saves you money on fees, but also automatically updates your loyalty programme, provides smart sales insights, and even puts you on the map for potential new customers.

Meanwhile, your regulars can pay their brunch bill without even bringing a wallet, quickly send their share of the brunch tab to friends, manage their bank accounts, loyalty cards and gift vouchers seamlessly in one place, and easily track their daily flat white habits.

Soon this will be the reality for New Zealand businesses and their customers with the launch of Payap – the country’s first digital wallet and Point of Sale (POS) app compatible with all New Zealand banks.

Leveraging the power of open banking, Payap offers a new lower cost, contactless way to pay and get paid. Payap makes transactions effortless: users simply scan QR codes dynamically generated on an EFTPOS terminal, enabling instant cash transfers directly from their bank account. It also provides a low-cost ecommerce solution, making it easy and affordable for businesses to accept payments online.

     

With Payap’s 0.39% payment acceptance rate, a retail business turning over $100,000 monthly could save up to $7,320 annually compared to the average 1% merchant service fee reported by the Commerce Commission. For ecommerce businesses, Payap’s 0.59% fee is approximately 80% cheaper than the percentage fees charged by some other providers.

  • Businesses using Payap also have access to a suite of powerful features, including:
  • The ability to create and manage loyalty programmes, making it easy to reward customers and build brand loyalty
  • Enhanced visibility over transactions and the ability to manage discounts and refunds through a dedicated portal
  • Increased visibility with Payap’s ‘store finder’ map, showcasing location, business details, and available offers to app users
  • Use existing hardware – Payap is supported by all leading EFTPOS providers

For consumers, Payap brings together all your accounts from New Zealand banks, as well as loyalty, and even gift cards in one easy-to-use digital wallet. It allows seamless payments from any linked account and offers a range of features that simplify money management:

  • Manage your bank accounts, loyalty, and gift cards in one place
  • Split a payment across multiple sources, combining different bank accounts, debit cards, or gift card balances, all managed seamlessly within Payap
  • Easily split bills or manage shared expenses with friends with peer-to-peer payments
  • Log all your receipts in one place and get smart insights to gain a clear view of your spending patterns
  • Level up your loyalty, with rewards automatically applied during transactions

      

Powered by New Zealand fintech Centrapay and backed by BNZ, Payap is now available for business sign-ups ahead of the March 2025 consumer launch. The onboarding process is quick and free, and businesses are encouraged to register their interest. Payap is available to all businesses regardless of who they bank with.

“Payap is the country’s first comprehensive digital payment service that leverages the power of open banking to fill a clear gap in the New Zealand market,” says Centrapay CEO Greg Beehre.

“We’re excited to introduce this innovative solution that will transform how businesses accept payments and how we manage our money.”

BNZ Executive Customer Products and Services, Karna Luke, says the potential Payap offers to both businesses and consumers is impressive.

“Our team is working closely with our business customers to onboard them before the consumer launch, and we expect thousands of businesses to be on the platform on day one when their customers start using the app.

“Payap is designed to benefit businesses across Aotearoa, and we welcome all interested businesses – from small street vendors to enterprise retailers and everything in between – to get in touch with us to explore how it can enhance their payment system and customer experience.”

Core payments, acceptance and rewards features will be available at launch, with additional capabilities like peer-to-peer payments being rolled out progressively throughout 2025.

Businesses interested in learning more about Payap can visit www.payap.com or www.bnz.co.nz/payap

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Education key to open banking success, BNZ survey finds

Source: BNZ statements

While many New Zealanders have heard of open banking, few understand its benefits, according to new research from BNZ.*

Open banking gives bank customers the power to control and securely share their financial data with trusted third parties like fintechs.

Access to that data means banks and fintechs can create highly tailored products and services, such as apps that offer insights into spending habits, budget planning and savings goals, or that instantly share financial information with multiple lenders, making it easier and faster to apply for a loan.

“Our survey found that while 60% of respondents have heard of open banking, only a quarter (26%) have some understanding of what it means,” says Karna Luke, BNZ Executive, Customer Products and Services.

“However, after learning more about its capabilities, nearly three-quarters (73%) expressed an interest in using open banking services.

“This shows that New Zealanders are very open to new ways of managing their finances but need the right information to feel confident about using the technology,” says Luke.

The survey also shed light on some risky practices highlighting a need for greater education. Two-thirds (66%) of respondents reported having used payment services that rely on screen scraping. This practice puts users’ data at risk by requiring them to share their online banking login credentials with third parties to access certain services.

“Open banking provides a safe and secure way to share your financial data with trusted third parties without ever having to disclose your banking login details. It’s much more secure than screen scraping, but our survey shows a big gap between awareness and understanding of open banking’s benefits, particularly around security,” says Luke.

Bridging the knowledge gap

Luke says education is key to building the trust and confidence needed to drive greater adoption of open banking and realise its benefits.

“At BNZ, we’ve been collaborating with fintechs since 2018 to develop innovative products and services that showcase open banking’s potential, and we’ve developed content and resources to inform and engage our customers about the benefits. Already, more than 250,000 BNZ customers are using apps and other services made possible through open banking.”

“While we’ve made good progress, there’s still more work to be done to educate New Zealanders about the benefits of open banking and build trust in its capabilities. This will be crucial to ensure that everyone can take advantage of the huge potential open banking offers.”

Luke highlighted the importance of the Consumer Data Right (CDR), which is currently progressing through Parliament as part of the Customer and Product Data Bill. The CDR sets rules around how customer data is shared and managed and ensures legal safeguards are in place to protect New Zealanders.

“While banks have been working hard to build the technology needed for open banking, the CDR will provide the rules and protections necessary to ensure people feel secure and confident using these new services,” Luke says.

“The Government’s commitment to investigate opportunities for early adoption of open banking by government agencies, in line with recommendations from the Commerce Commission, is also a welcome move which could significantly boost public trust and understanding.

“We’re committed to working alongside regulators and the wider industry to ensure that open banking delivers on its promise of greater financial empowerment and choice for all New Zealanders.”

For more information about open banking and BNZ’s initiatives, visit bnz.co.nz/openbanking.

*Source:  BNZ Voice customer panel survey, 18th to 28th July 2024. Total responses: n=355. The profile of participating customers was not controlled for this survey.

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BNZ the first NZ bank to achieve next open banking (open data) milestone

Source: BNZ statements

Bank of New Zealand (BNZ) has taken another critical step toward open banking—better described as open data—becoming the first bank in New Zealand to meet a major milestone set by Payments NZ.

BNZ has implemented the Payments NZ Account Information API v2.1 standards, which when open banking is fully operational, will enable New Zealanders to safely and securely share their financial information with approved providers.

“While it sounds a little dull, API v2.1 is really the engine room of open data. It’s the piece of the tech puzzle that means our customers have full control over what data they share, who they share it with and importantly, it gives them control to stop sharing their data too,” says Karna Luke, BNZ’s Executive of Customer Products and Services.

Payments NZ plays a key role in establishing the open banking system and has set New Zealand’s major banks the task of implementing Account Information API v2.1 standards by November this year. This follows the May 2024 requirement for major banks to support payments via APIs, enabling direct account payments through third-party apps. BNZ achieved this in 2023.

“That we’ve been able to reach this milestone three months ahead of the deadline reflects the commitment that BNZ has made to support the implementation of open banking. Over 250,000 BNZ customers are already benefitting from innovative services made possible through this technology, including services from Xero, Volley, and Blinkpay, all of which connect to BNZ through secure APIs,” says Luke.

What it all means for customers

This secure access to real-time financial data empowers third-party providers and fintechs to provide customers with new, innovative, and highly personalised financial products and services. Potential use cases include:

  • Personalised budgeting tools: Apps that offer tailored budgeting advice based on real-time financial data and spending habits, helping users manage their finances more effectively.
  • Customised savings plans: Solutions that design personalised savings plans and automate transfers based on users’ financial behaviour and goals.
  • Advanced financial insights: Tools that provide detailed analysis of spending patterns and identify new financial opportunities, enhancing users’ understanding of their financial situation.
  • Streamlined loan applications: More efficient loan processes that simplify and speed up approval by leveraging comprehensive account information.
  • Fraud detection and prevention: Facilitating third party apps or services to use real-time account data to identify unusual activity, improving security.

“Being the first bank in New Zealand to deliver this API demonstrates our focus on helping drive the future of open banking in New Zealand,” says Luke.

“We’re excited to see more fintechs and developers join those we’re already working with to leverage this technology to create innovative solutions that will benefit our customers and the country.”

“It’s also important to remember that banking services are just the beginning. The Customer and Product Data Bill currently progressing through Parliament will establish a Consumer Data Right (CDR) in New Zealand, enabling open data sharing across multiple sectors.”

This will further unlock digital innovation, making it possible to do things like instantly and securely verifying your identity online, via the information held about you by your bank, insurer or power company, or finding the best deal across utility or insurance companies and switching easily.

For more information about the Account Information API v2.1 and its capabilities, please visit https://developer.bnz.co.nz/

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No card? No problem: New Zealanders can now shop online without a credit or debit card

Source: BNZ statements

Ka whangaia, ka tupu, ka puawai (“that which is nurtured will grow and blossom”)

 New Zealanders can now easily shop online without needing a credit or debit card, thanks to an API agreement between homegrown Māori fintech start-up BlinkPay and the Bank of New Zealand (BNZ).

BlinkPay provides a platform that connects businesses with their customers using BNZ’s secure API built to Payments NZ standards – a tool allowing third-party services to securely connect with BNZ accounts, with customer consent.

Blink PayNow is a new payment solution that makes online shopping easy by enabling account to account payments within New Zealand with only a couple of clicks, eliminating the need for a credit or debit card, while reducing transaction fees for merchants.

“As pioneers in the API payment solutions space, BlinkPay is proud to collaborate with BNZ, which is a leader in the NZ financial services sector,” says Adrian Smith (Ngāpuhi), Chief Product Officer and co-founder of BlinkPay.

“This collaboration allows BNZ merchants to access BlinkPay’s payment products like Blink PayNow and, in the future, Blink AutoPay. Both products provide a straightforward and secure payment method from a customer’s BNZ bank account.”

Karna Luke, BNZ’s Executive of Customer Products & Services, says it’s about simplifying the digital economy and making it accessible to more New Zealanders.

“Whether it’s for the latest fashion, an annual insurance premium, or other domestic online purchases, this service makes it possible to easily pay for your shopping online with just a bank account.

“Enabled through our secure API, this is a step forward for inclusive banking in Aotearoa, reducing barriers and making it easier for consumers and businesses to benefit from the digital economy.”

BNZ has been providing open banking services since 2018 and has consistently led the market in New Zealand in releasing APIs. It is a strong supporter of industry moves toward secure standards for open banking, and its APIs are already being used by a range of different organisations and companies, from local councils to financial service providers, fintechs, and many more.

How Blink PayNow works 

At checkout on a BlinkPay-integrated website, customers simply select Blink PayNow and choose their bank. They are then redirected to their bank’s portal, where payment details are pre-filled.

After reviewing and confirming the payment from their mobile banking app, customers are taken back to the merchant’s site with a successful payment notification.

No credit card details, no lengthy forms, just a few mouse clicks or taps on your smartphone.

 

 

Making it cheaper to do business

In addition to providing a user-friendly, secure and accessible payment option for customers, businesses using BlinkPay will also benefit from cheap fees. BlinkPay’s standard fee is 0.95% per transaction, capped at $3.00 NZD, and there is no cost to consumers who pay through the service.

“We’re proud to offer cheaper fees to New Zealand businesses than our multinational rivals. Reduced fees make it easier for businesses to be competitive in the marketplace, which is also good news for consumers,” Mr Smith says.

To introduce this new feature, BlinkPay is offering BNZ-merchants a special deal: no integration fees and half-price transaction fees until 31 December 2023. Merchants can get this offer by signing up on BlinkPay’s website by the 30th of September 2023.

For more details on this payment method, visit BlinkPay’s official website.

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