Payments NZ has released its first API standards for banks and third-parties, leading the way for open banking frameworks and improved innovation.
Over coming months, Payments NZ will also open an API standards service which will enable organisations to apply to become registered standards users. In joining this, banks and third-parties will be able to use the standards to simplify and streamline partnerships and cement themselves in the API standards environment.
Stage one of the standards cover payment initiation and account information. Payments NZ began with these as they make up the essential ‘building blocks’ for improved customer experiences. Standardising these APIs will ensure interoperability, efficiency, innovation, and safety in this space.
There were six development partners undertaking the technical test aspects of the pilot, and numerous organisations across the industry supported the system.
Payments NZ chief executive Steve Wiggins said, “The standards have been developed as part of an industry initiative that included an industry pilot. The pilot has now wrapped up and what it has proven is that in our increasingly digital world, there is a high demand for common standards. The market will now have a common basis to deliver more new and improved payment solutions for Kiwis as the service evolves and the ecosystem grows.
“Our standards have been developed in response to market demand, provide good core functionality and will continue to evolve to meet the needs of the market.”
The group is currently developing a pipeline of new API functions and standards which will be launched in the near future.
Formed in 2010 by the Reserve Bank, Payments NZ governs New Zealand’s core payment systems and support the development of the space. The establishment of these standards will help to build ‘a more open future,’ the organisation said.
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