Asb, bnz, westpac, datacom, paymark and trade me to pilot software aimed at opening the door to easier and more competitive digital payments data recovery usb flash drive

They are working with datacom, paymark and trade me to test technology that gives their customers the option of authorising online payments by accessing their bank accounts via third parties. In other words, making payments online without using credit or debit cards.

However the global movement for them to be used to enable people to access their bank accounts via third parties (when online shopping or using budgeting apps for example) is still gaining traction.

The minister of commerce and consumer affairs, kris faafoi, has adopted his predecessor’s request that banks, which own payments NZ, demonstrate they’re doing something in this space to pave the way for greater retail payments competitionby april.Accounts third

Payments NZ’s CEO, steve wiggins, in january told interest.Co.Nz the organisation was seeking expressions of interest from its members to pilot an API.

Having announced the participants on friday, wiggins explains they are a subset of a broader industry group working to create a framework to accompany the technology.

With more than 15 people from some of the key organisations working on the project, wiggins admits it’s a pretty heavy commitment, which not everyone has the capacity for at present.

“the whole point of this is to get a common framework across the whole industry so third parties can just plug in once, and it’s consistent across all of the participant banks that are involved.”

accounts third

“an important outcome of the design will be to ensure the framework is right-sized for new zealand and balances the need to drive innovation with the overall efficiency, openness, interoperability and safety of the payments system.”

Payments NZ is also seeking input from a broad range of parties, and is keeping in close contact with the ministry of business innovation and employment.

Faafoi in november told interest.Co.Nz he wanted to work collaboratively with banks, and wasn’t far enough down the road to have a firm view on exactly where government regulation might fit into the open banking picture.

Government authorities in the european union have already started regulating open banking, while the australian government is the process of doing so.Bank accounts

Payments NZ’s API pilot is expected to be completed late this year. It will announce timeframes around the release of a standardised API as things progress.

Wiggins says payment NZ will give faafoi an official update on the work it is doing to increase competition in the payments space within the next week or two.

While the API pilot and framework development make up a part of this, payments NZ will also update the minister on what it’s doing to ensure there’s more transparency around fees in the sector.

We welcome your help to improve our coverage of this issue. Any examples or experiences to relate? Any links to other news, data or research to shed more light on this?Their bank any insight or views on what might happen next or what should happen next? Any errors to correct?

We welcome your comments below. If you are not already registered, please register to comment or click on the "register" link below a comment.

Remember we welcome robust, respectful and insightful debate. We don’t welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.

Instead of poli passing a payment request on to a customer’s bank, an API will see the bank control the authorisation process to make the payment.

Referring back to that january article, poli’s director of payments strategy, allister hunter, explained: “an API moves the components of the payment closer to the bank, which we think is a good thing.Bank accounts that’s where it should be…

“connecting to banks through apis would mean customers would use a bank-branded interface when they enter their bank customer numbers and passwords to make payments.

For example, say you have bank accounts with westpac and ASB. There is no way for you to look at these bank accounts together on one platform through internet banking.

This simply opens the door to more innovation, so that you can manage your money in a range of ways, rather than just through the platform provided to you by your bank.

As mentioned in the comment below, there is a new zealand developer, ben lynch, who is about to launch a programme that gives you more choice.Bank accounts banks aren’t on board with it yet, but ben is kicking on with it nonetheless. I interviewed him for this story.