The Reserve Bank of New Zealand has published an issues paper seeking feedback on modernising the country’s retail payment system. It finds that the system remains operationally reliable but relies on outdated infrastructure, lacks modern capabilities and is constrained by fragmented regulation, weak system-wide leadership and incumbent incentives that do not always align with public interest objectives. Indicative analysis estimates that modernisation could add NZD 0.7 billion to NZD 1.3 billion to annual gross domestic product, or 0.16% to 0.30%. The work will proceed through two linked streams. One will assess technical and platform requirements, including whether to continue incremental reform or pursue structural infrastructure modernisation. The other will examine strategic leadership, regulatory coordination and system governance, with reform of industry governance and leadership identified as a minimum requirement. Feedback is due by Oct. 27, 2026. The Reserve Bank expects to advise ministers on options in the first half of 2027 and will also develop a proposed roadmap and business case. Roles, responsibilities and policy options will be subject to a subsequent public consultation and cost-benefit analysis.
2026-08-18Reserve Bank of New Zealand
Reserve Bank of New Zealand launches consultation on retail payments modernisation, estimates up to NZD 1.3 billion in annual GDP gains
The Reserve Bank of New Zealand is consulting on modernising an operationally reliable but outdated retail payment system, with potential annual GDP gains estimated at NZD 0.7 billion to NZD 1.3 billion. Its two workstreams will assess infrastructure options and reforms to leadership, regulation and governance. Feedback is due by Oct. 27, 2026, with ministerial advice expected in the first half of 2027.