The unveiling of the fast payment system by New Zealand’s local financial technology (fintech) business BlinkPay yesterday marked another progress and development in New Zealand’s open-banking aspirations. And this is an attempt to manage funds, make payments, or provide alternative financial products, open banking enables users to exchange bank account information with other financial services providers.
Instead of using the current payment system, which settles transactions every half-hour or overnight, BlinkPay’s solution would settle transactions in seconds.
Adrian Smith, the company’s CEO, said that its system made better use of the current payment infrastructure.
“This capability is ready to go and represents a potential game-changer for New Zealand’s payments landscape.”
In 2024, it was reported that BNZ acquired BlinkPay and pledged to implement the technology, although running the business on its own. BNZ claims that it first signed participant was Blinkpay. The CEO calls for more banks to sign up on the platform and also went ahead to say that transactions processed instantly.
The technology has the potential to give businesses and every individuals more options when it comes to sending and receiving money, according to CEO Dan Huggins.
“This technology works alongside the existing payment system, expanding the range of options rather than replacing what already works really well.”
Smith also said that the technology will enable real-time emergency fund distribution in the event of a major disaster or crisis, service providers to be paid as soon as a task is completed, and buyers to pay for a car instantly and drive it off the forecourt.
Instantaneous property settlements, rental bond transfers, and insurance claims are possible additional uses.
We are to know that the open banking makes it possible for third-party service providers to safely access client data via APIs, hence facilitating interoperable financial services. These APIs make it easier for banks and approved third-party suppliers to securely exchange financial data.
Open banking enables banks to grant access and control over the personal and financial information of their clients to third-party providers, frequently Internet startups or online financial services. Consumers usually consent to banks granting such access by ticking a box on a terms-of-service screen.
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