BlinkPay and BNZ use Open Banking to test real-time payments capability

Source: BlinkPay

BlinkPay has proven real-time payments can work in New Zealand now, using Open Banking, with BNZ the first bank to participate in testing.

Test payments moved through BlinkPay and appeared in a recipient BNZ account in 2.6 seconds, measured from customer approval to funds appearing in the account.

Adrian Smith, chief executive officer of BlinkPay, said the result shows New Zealand’s banking infrastructure can support payments appearing in accounts in seconds.

“When money can move in seconds rather than hours or overnight, businesses make decisions differently. Customers commit with more confidence. That’s the real shift here – not just faster payments, but payments that work more in step with real-world needs.”

Real-time payments could help in everyday business situations, such as an invoice being paid and available instantly, a tradie being paid immediately after completing a job, or a seller confirming funds have arrived before releasing high-value goods.

Over time, the capability could also support other uses where speed and certainty matter, including property settlements, rental bond returns, insurance payouts, or urgent government support payments after a civil emergency.

The service is designed to work with any participating bank that supports the Open Banking standards, building on existing payment infrastructure to enable faster payment experiences where speed and certainty matter.

The testing also gives industry and regulators a real-world view of how faster payments could work in New Zealand, allowing policy settings, standards, recipient bank fraud checking, and customer demand to be tested in practice.

New Zealand has spent years building the foundations for Open Banking. Real-time payments are another proof point that the investment is delivering against its promise, Smith says.

“We have proved that a payment can move through BlinkPay and appear in a bank account in seconds. BNZ being first to participate is an important proof point, and the opportunity now is to bring more banks and partners on board so the benefits can be realised by more businesses and customers today.”

New Zealand banks currently process domestic electronic payments seven days a week, including weekends and public holidays. But standard payments between banks are still generally processed in batches at regular half-hourly or hourly intervals between around 9:00am and 11:45pm, rather than instantly.

“Open Banking gives New Zealand a practical way to deliver faster payment experiences now, as more banks and partners come on board,” Smith says.

“This is the kind of progress Open Banking was designed to support. More choice, more flexibility, and improved services for New Zealanders.”

Smith says faster payments bring fraud and consumer protection considerations, and these need to be a core part of how solutions like this are implemented as more banks and partners come on board.

“These considerations can be managed through protections built into the payment experience, including strong customer authentication, account-name checks, and real-time transaction monitoring. Testing these in real-world use cases is one of the advantages of using Open Banking to help shape how the system develops.”

Dan Huggins, chief executive officer of BNZ, said that they’re pleased to be the first bank to participate in testing.

“Open Banking is about giving customers and businesses more choice, more control and better services,” Huggins says.

“This work with BlinkPay shows how bank and fintech collaboration can turn Open Banking into practical outcomes. BNZ is pleased to have helped prove a service that has the potential to benefit businesses and customers across New Zealand.”

Smith says BlinkPay is continuing to work with banks and payment partners to make faster payments more widely available.

“The technology has been tested, and businesses are asking for faster, simpler ways to move money,” he says.

“The next step is bringing more banks and partners on board, so more New Zealand businesses and customers can benefit.”

Further reading: Open Banking goes live in New Zealand