Payment processing and solution platform provider BlinkPay has partnered with banks across New Zealand to bring open banking to the region.
BlinkPay hopes to bring the success open banking has seen across the globe to change how merchants and consumers interact financially in New Zealand. July 2023 saw the open banking sector in the UK reach a milestone of over 11.4 million payments – a 9.3 per cent increase in total payments, when compared to the month before.
The UK has already seen a dramatic increase in the adoption of open banking, boasting a 105 per cent rise in active users from June to July 2023. BlinkPay explained that it does not expect this trend to become a passing phase – but instead signifies a “significant shift” in how financial transactions take place.
Adrian Smith, chief product officer at BlinkPay, discussed the potential significance of the move for New Zealand: “Open banking is changing the game for both consumers and businesses.
“It’s not just about new technology; it’s about offering more choices, better security, and simpler financial management. For merchants, this means quicker payments, lower transaction costs, and happier customers. We at BlinkPay are thrilled to be at the forefront of bringing these benefits to New Zealand.”
BlinkPay also explained that it believes one of the largest benefits open banking could bring is a significant reduction in fees when compared to traditional payment methods.
It also referenced the possibility for real-time transactions to help merchants improve their cash flow; while open banking also eliminates the need for sharing sensitive card details – making transactions more secure.
“Reshaping the financial and payments landscape”
In the UK, year-to-date data for 2023 against 2022 highlights that total payments doubled, with 102.4 per cent growth.
Marion King, chair and trustee of Open Banking Limited, the UK’s implementation entity, discussed the significance of this growth: “The strong and sustained growth in open banking payments underscores the rapid pace at which open banking is reshaping the financial and payments landscape.
“It reinforces the pivotal role open banking plays in driving financial inclusion, innovation, as well as consumer empowerment.
“As open banking continues to redefine the way people manage their finances, the doubling of total payments in just one a year is a remarkable achievement and testament to the transformative impact of open banking.”