Our role in money and payments
We play an important role in how money moves through New Zealand’s economy. We oversee, operate, regulate, and supervise core payment systems to make sure they are safe, reliable and efficient.
Through these systems, New Zealanders can:
- save and spend money
- manage financial risks
- support economic growth and everyday transactions.
New Zealand’s payment landscape
Exchange Settlement Account System (ESAS)
The Exchange Settlement Account System (ESAS) is a core part of New Zealand’s payments infrastructure. It’s used by banks, large financial institutions and the New Zealand Government and enables real-time, final settlement of payments.
Why New Zealand’s payment system needs modernising
New Zealand’s retail payment system is reliable for many users, but it has several structural issues. It has struggled to modernise and is falling behind modern global standards.
We're working to modernise the system to support faster payments, greater innovation, and better outcomes for all New Zealanders.
What we're doing
The Minister of Finance has asked us to lead the work on modernising New Zealand’s payments system, including developing a payments modernisation strategy and working with government agencies and industry to deliver it.
The first step of this is an Issues Paper that will:
- test our understanding of the challenges facing the payments system
- outline high-level strategic objectives
- set out the case for change.
We will also get feedback from key agencies and industry stakeholders, and work with them to test any issues. We’ll continue to analyse the results and engage with stakeholders before deciding on proposed options, which will then be followed by a secondary public consultation.
What a modern payments system will look like for you
A modern payments system will be more efficient and reliable, and support innovation and competition
This means you will:
- be able to send and receive money instantly to people and businesses in New Zealand
- be able to make faster, cheaper and more secure payments internationally
- have more control over how you manage your money
- have more choices about who you bank and pay with.
With a modern payment system, you’ll be able to send money overseas faster —sometimes almost instantly—and pay less in fees.
This will make a big difference for communities that rely on international transfers, including many Pacific People’s and their households where remittance payments are currently slow and expensive.
A modern domestic payments system interlinked with other regions’ payment systems will also mean that New Zealand businesses will be less disadvantaged when competing internationally.
Businesses will benefit from:
- real-time payments and settlement
- simpler accounting and reconciliation
- instant payment on delivery or on demand
- faster payments to lock in orders with local and international suppliers.
This can reduce costs, improve cash flow, and help businesses compete better internationally.
Organisations will be able to:
- deliver payments faster and more efficiently
- improve transparency
- reduce administrative costs by automating tasks.
Banks and fintechs will have:
- more flexible and open systems to develop new products and services
- better ability level playing field to access infrastructure and to compete in the market
- real-time information to help manage risk
- stronger security to protect payments and data.
We’re committed to supporting both digital payments and cash
We’re making sure you have better, more flexible ways to pay.
This means you’ll be able to:
- use faster, more reliable digital payments for everyday spending
- continue to access and use cash when you need or prefer it.
By supporting both digital payments and cash, we’re helping ensure you have more choice, better access, and confidence in how you pay—every day.