What is open banking?

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Open banking is a payment method that lets customers pay directly from their bank account, using their bank's own app to authorise the transaction.

There is no card involved. No card number to enter, no card network to route through, and no interchange fee for the merchant to absorb.

Instead, the customer selects "pay by bank," approves the payment in their banking app using their existing biometrics or PIN, and the transaction is confirmed. For many customers it takes three taps and a face scan.

For the merchant, it means payment arrives directly into their account, with instant confirmation. No chargebacks. No declined cards. No stored card data to worry about.

In New Zealand, open banking runs on a regulated infrastructure managed by Payments NZ and overseen by MBIE. Every bank that offers it, and every fintech that connects to it, must meet strict accreditation and security requirements. Qippay is accredited.

 

​How does open banking work in New Zealand?

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Step 1: Customer chooses to pay by bank At checkout or on your payment page, the customer selects the open banking option.

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Step 2: Customer approves in their banking app They are taken to their bank's app or website, where they authenticate using their existing biometrics or PIN and confirm the payment. Nothing new to sign up for. No credentials shared with anyone other than their own bank.

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Step 3: Payment confirmed instantly The bank confirms the authorisation in real time. The payment is submitted and processed. You receive confirmation immediately.

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Why is open banking growing now?

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New Zealand has been building toward this moment for several years. In December 2025, the Customer and Product Data Act came into force, making open banking a regulated right for every New Zealander. ANZ, ASB, BNZ, and Westpac are all live. Kiwibank follows in mid-2026.

The timing is not accidental. The surcharge ban that came into effect in 2024 removed merchants' ability to pass card processing costs on to customers. For many businesses, that cost simply became theirs to absorb. Open banking offers a genuine alternative: a payment method with no interchange, no card network margin, and no hidden cost structure.

The consumer side is moving too. More than 180,000 open banking payments were made in New Zealand in October 2025 alone. Customers are using it because the experience is fast, familiar, and secure. The banking app they already trust is the approval mechanism. There is nothing new to learn.

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​What does open banking enable?

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One-off payments

A customer pays at checkout, direct from their bank account. No card details, no card network, no interchange. Powered by Qippay's PayBy, SetPay and AnyPay products.

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Recurring payments

A customer authorises a series of future payments in a single step. Payments run automatically after that, whether fixed or variable, without the customer having to act each time. Powered by Qippay's SetPay product.

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Account data access

With explicit customer consent, open banking also enables access to account information: balances, transactions, and payment history. This powers smarter onboarding, lending decisions, and financial management tools.

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Why is open banking better?

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Lower cost

No interchange. No card network margin. Qippay charges a flat fee per transaction that does not scale with your transaction value. For most businesses, the saving compared to card processing is significant, and it compounds at volume.

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More secure

No card data is stored anywhere in the payment flow. The customer authorises the payment inside their own bank app, using the same authentication they use every day. Qippay does not hold banking credentials. Neither does any other party in the chain.

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Better experience for customers

Three taps and a face scan. No card numbers to remember or enter. No expiry dates to update. Customers who discover open banking tend to prefer it because the experience is faster and simpler than entering card details.

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Built for New Zealand

Qippay holds direct bilateral API agreements with all four major New Zealand banks. Our connections are purpose-built, not screen-scraped, and not routed through overseas infrastructure. We are a New Zealand company, building New Zealand payment infrastructure.

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Is open banking safe?

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This is the question every merchant asks, and it deserves a straight answer.

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Yes. Open banking in New Zealand is built on bank-grade infrastructure. When a customer pays via open banking, they never share their banking credentials with anyone other than their own bank. There is no screen-scraping, no stored login, and no third party handling their password.

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The payment is authorised directly inside the customer's banking app, using the same authentication they use every day: biometrics, PIN, or face ID. The bank confirms the authorisation to the merchant. That is the entire data flow.

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Qippay is accredited under MBIE's Consumer Data Right framework, ISO 27001 certified, and holds direct bilateral API agreements with all four major banks. We do not screen-scrape. We are the only New Zealand-owned open banking company with direct bilateral agreements across all four major banks.

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Frequently asked questions

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Which banks support open banking payments? ANZ, ASB, BNZ, and Westpac are all live. Together they cover more than 90% of New Zealand bank accounts. Kiwibank is on a phased schedule, with payment initiation expected mid-2026.

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What does it cost to accept open banking payments? Qippay charges a simple, flat fee per transaction. There is no interchange, no card network margin, and no percentage-based fee that scales with your transaction values. For most businesses, the saving compared to card processing is significant.

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Can customers still pay by card if they prefer? Yes. Open banking is an additional payment option, not a replacement. You can offer both. Many merchants find that customers who discover open banking prefer it, because the experience is faster and they do not need to enter any card details.

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What if a customer does not have mobile banking set up? Customers need to be enrolled in their bank's mobile or online banking to use open banking payments. If they are not, they can fall back to their usual payment method. In practice, the vast majority of New Zealanders with a smartphone are already enrolled.

How do I add open banking to my website or app? Qippay offers both a Hosted option, which is low on technical overhead and quick to get live, and an Embedded option for full control over the customer experience. See our Solutions pages or talk to our team to find the right fit for your setup.

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Ready to accept open banking payments?

Qippay connects you directly to all four major New Zealand banks. No card network. No screen-scraping. Just a straightforward, low-cost payment method your customers already know how to use.