Version 2.3 of the Payment Initiation API standard for Open Banking was implemented at the end of May, marking the third step under the industry’s minimum Open Banking implementation strategy. This will enable fintechs and payment service providers to offer new payment options to their customers in the region.
This standard introduces the mandatory support for ensuring payment consent. This is a critical function sought by the industry, allowing customers to make automated repeat payments from their account through third-party services authorised through their online banking portal or app. The API Centre is working with the four largest banks in the region, with an additional bank, Kiwibank, also preparing to implement the standard.
Following the implementation, users can authorise payments to happen under a certain limit, with notifications alerting them to review and approve the payment before it goes through if the limit is exceeded.
Representatives from Payments NZ’s API Centre mention that the move aims to put the country ahead of international peers when it comes to Open Banking and to offer industry players a way to deliver new and upgraded payment experiences for customers.
The move follows MBIE’s preparations of regulatory requirements for Open Banking under the Customer and Product Data Act, passed earlier in 2025. The API Centre is committed to working with MBIE to ensure a sustainable Open Banking system that is compliant with local and global industry laws.
The implementation comes as API Centre celebrates six years of progress in its mission, focusing on the future of Open Banking in Aotearoa under the emerging CPD framework. Amid this, the centre aims to launch Ngā Tohu Ārahi, its Data Handling Guidelines, developed in partnership with Māori data experts and guided by the Māori Data Governance framework and principles. Together with regulators, Māori data experts, and banks, the centre helps shape the development of payments and data sharing in the country.
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