In New Zealand, open banking is emerging as real infrastructure. As of 2025, all major banks in New Zealand were required to support open banking, but many had already run pilots with open banking networks. In October 2025 alone, more than 100,000 people in the country used open banking services. Banks, fintech companies, and customers are sending money and data through these new channels, which are faster, cheaper, and more connected than what came before.

The collaborative approach to open banking in New Zealand has influenced its scope and shape. Below, we’ll explore what that system looks like now, how it’s developing, and what it enables for businesses.

What’s in this article?

• What is open banking in New Zealand?
  
• How is open banking developing in New Zealand?
  
• Who are the main stakeholders in open banking in New Zealand?
  
• What is the role of Payments NZ and the API Centre?
  
• How do banks share data securely under New Zealand’s open banking frameworks?
  
• What are the accreditation and technical requirements for third-party access to open banking?
  
• How can businesses in New Zealand use open banking?
  
• How Stripe Payments can help
  

What is open banking in New Zealand?

Open banking gives customers control over their banking data. Under New Zealand’s open banking framework, people can share their banking data with third parties and authorize direct payments from their bank accounts.

Because customers own their banking data, they can access more tools from outside companies, which include faster checkouts, more detailed budgeting apps, and smarter lending services. As of late 2025, bank data portability is a legal requirement under New Zealand’s Consumer Data Right (CDR).

How it works in practice

When a user connects a third-party app to their bank, they log in through the bank’s secure channel and choose what data or permissions to share. Based on that consent, the third party either gets read-only access or can initiate a payment.

How is open banking developing in New Zealand?

In other countries that have adopted open banking, the government took the lead through legislation. New Zealand took a different path: banks and fintechs voluntarily built open banking infrastructure, and the government is following them.

Here’s the timeline for adoption:

• 2019: Payments NZ launched the API Centre, a hub for banks and third parties to codesign technical standards for secure data sharing and payments.

• 2021: Major banks like BNZ and Westpac started running live pilots using those application programming interfaces (APIs).

• 2022: The government announced it would formalize open banking under a new CDR.

• December 1, 2025: By this date, the five largest New Zealand banks (ANZ, ASB, BNZ, Westpac, and Kiwibank) were legally required to support data sharing.

• Mid- to end of 2026: In this time frame, all five banks must also support payment initiation.

This trajectory has been effective: in just one month in 2025, more than 100,000 customers used open banking to make more than 180,000 payments.

Who are the main stakeholders in open banking in New Zealand?

In New Zealand, players ranging from regulators to startups are working on open banking together. Collaboration has created an active, compliance-oriented system. Here are the major stakeholders.

Government and regulators

Several government ministries and regulators are working to launch this new framework. The Ministry of Business, Innovation and Employment is steering the new CDR. The Commerce Commission introduced urgency by flagging open banking as competitively necessary. The Reserve Bank and Financial Markets Authority also provide oversight: they’re focused on financial system safety and consumer protection.

Banks

The big five New Zealand banks (ANZ, ASB, BNZ, Westpac, and Kiwibank) are the first official open banking “data holders” and are already exposing APIs for account info and payments.

Payments NZ and the API Centre

Payments NZ, which is owned by the big banks, operates as a neutral coordinator for national payment systems. Its API Centre sets open banking standards, hosts a shared sandbox, and runs governance councils. It also offers a partnering schematic that helps third parties onboard across multiple banks.

Third-party providers

Fintechs, software-as-a-service (SaaS) platforms, and intermediaries are already building new services that work with customers’ banking data. Some connect directly with banks, while others use aggregators. All services require customer consent and must meet technical and operational standards.

What is the role of Payments NZ and the API Centre?

Payments NZ is owned by the major banks and is the operator for New Zealand’s core payment systems. Its open banking arm, the API Centre, is where the open banking infrastructure lives. When the government moved to regulate open banking, it built on this existing setup. Here’s what it includes.

A shared standards layer

The API Centre publishes the specs that define open banking, which include data formats, authentication flows, and security profiles. These specs were built with input from both banks and fintechs, and are regularly versioned and updated. All major banks implement this blueprint.

A governance model that includes fintechs

The API Council (Payments NZ’s governance group) includes third-party providers and independent experts as well as banks. All have worked together to make standards usable as well as bank compliant.

A centralized onboarding system

Third-party providers can register with the API Centre and use the shared tools there to maintain due diligence. One of these tools is a secure system for sharing compliance docs across multiple banks, which cuts out overhead that would otherwise slow partnerships.

A neutral sandbox

The API Centre maintains a live sandbox that mirrors real API behavior. This helps developers test integrations early and improve quickly.

How do banks share data securely under New Zealand’s open banking frameworks?

In New Zealand’s open banking model, data moves through tightly controlled, highly audited infrastructure, and only when the customer permits it to. No one gets access unless every box is checked.

Here’s what that looks like.

Consent comes first

Every connection starts with the customer. If they want to share data or money with a third party, they enter the app and select their bank. They then confirm the data or payment access via the bank’s secure flow by logging in, completing two-factor or biometric authorization, or both. The third party sees only tokens.

In many open banking systems, data access consents expire after 90 days. Long-lasting payment consents, such as for recurring payments, come with built-in revocation controls and annual user notifications.

APIs are proven

All parties use the same API specs published by Payments NZ’s API Centre. The underlying security model follows OAuth 2.0 and the Financial-grade API (FAPI) profile, which are designed for sensitive financial data. Every API call is encrypted, permissioned, and trackable.

Only vetted players are allowed

Third-party providers must be accredited and registered. Banks won’t connect to anyone outside the API Centre, which means every participant has passed security checks and meets ongoing requirements for open banking regulations.

Operations meet high standards

Performance, uptime, and incident handling are all tracked by the API Centre. Beginning in 2025, banks must meet published service-level benchmarks, with transparency regarding API availability and error rates.

What are the accreditation and technical requirements for third-party access to open banking?

To tap into open banking in New Zealand, third-party providers have to meet strict standards. Vetting happens before connection and continuously after that.

Getting accredited with the API Centre

Regulators require providers to sign a common legal agreement, conduct detailed due diligence, follow security and data handling rules, and use secure authentication flows.

To speed things up, the API Centre offers a centralized due diligence service. Businesses can submit their materials once, and they’ll be shared with all participating banks.

Getting accredited under the new CDR

Before they can be accredited under the CDR, providers are required to have clear complaint and dispute resolution processes, hold appropriate insurance, and show proper customer data protection safeguards. Directors and other main staff must also pass a “fit and proper person” test.

Accreditation levels vary. Smaller providers, such as startups, can use accredited intermediaries to access data without taking on full compliance obligations themselves. These intermediaries are required to implement similar security and data handling procedures and include Anti-Money Laundering (AML) and customer identity checks.

Maintaining compliance

Providers must maintain their compliance and notify users if and when data access is ongoing. Banks monitor usage and can revoke access.

How can businesses in New Zealand use open banking?

Open banking is already creating real advantages for businesses in New Zealand. It enables real-time payments and smarter services. Here’s what it makes possible.

Paying directly from bank accounts

With payment initiation APIs, businesses can let customers pay straight from their bank accounts to ecommerce checkouts, donation platforms, and more. Payment settles immediately without surcharges.

Smarter onboarding and lending

Lenders and brokers can pull verified income and expense data from customers (with consent) as alternative credit data. That means faster approvals and more accurate credit decisions, especially for small businesses or borrowers with thin credit files.

Automated accounting and financial tooling

Open banking feeds can send real-time transaction data to accounting tools. This provides accurate, up-to-date financials for businesses. It works for customers, too: budgeting apps, financial coaches, and digital banks can use real data to make proactive recommendations.

How Stripe Payments can help

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