New Zealand’s public sector is under constant pressure to improve efficiency, reduce costs, and enhance service delivery. As digital transformation continues to accelerate, the need for secure, transparent, and cost-effective financial transactions is greater than ever. Open Banking offers an opportunity for government agencies to modernise their financial infrastructure, streamline payments, and improve citizen services.

To this end, we are delighted to see the New Zealand Inland Revenue leading the way with its recent Request for Information (RFI) on Open Banking Services.

Enhancing Payment Efficiency

One area of inefficiency in public sector financial management is the reliance on traditional payment systems, which often involve high transaction costs, delays, and reconciliation challenges. Open Banking-powered account-to-account (A2A) payment solutions such as Qip PayBy enable fast direct transactions between bank accounts, eliminating the need for intermediaries like credit card networks. This can significantly reduce transaction fees for government receivables, such as tax, rates, fines and licencing/registration fees.

By leveraging such solutions, agencies can power same-day value to boost cash flow and reconcile with ease through fixed reference details for a perfect match every time.

A Faster, Safer, and More Cost-Effective Way for Kiwis to Pay

With Open Banking solutions everyday New Zealanders can experience a more secure, convenient, and cost-effective way to make payments to government agencies and service providers. Some key benefits include:

· Safety & Security – Make payments directly from a bank app or website - no screen scraping, no sharing of passwords - keeping credentials completely private and secure.

· Zero Fees – Pay with solutions such as Qip PayBy and avoid transaction fees or hidden surcharges—saving money on every payment. Whether paying for a passport renewal, vehicle registration, or council rates, there won’t be any unnecessary processing fees.

· Speed & Simplicity – Enjoy a seamless payment experience with fewer steps and no unnecessary clicks.

· No Cards Needed – Skip the hassle of entering card details—just pay directly from a bank account, securely and effortlessly.

These benefits make Open Banking payments a game-changer for citizens interacting with government agencies, reducing friction and ensuring a smoother experience for all.

Cost Savings for Government Agencies

Public sector agencies often deal with high payment processing costs, especially for services that require online transactions. The fees associated with card payments and third-party processors can add up, directly impacting taxpayer funds.

Qippay’s Open Banking infrastructure allows direct payments between banks, bypassing costly card networks and reducing processing fees. By adopting this approach, government agencies can reallocate savings to critical services such as healthcare, education, and infrastructure.

Improving Financial Inclusion

Many New Zealanders, especially in lower-income groups, may not have access to credit cards or prefer not to use them due to fees or debt concerns. Qippay’s Pay-by-bank solutions ensure that all citizens—regardless of their banking preferences—can make government-related transactions easily, promoting greater financial inclusion.

Seamless Integration with Government Systems

The New Zealand Government’s Service Modernisation Roadmap emphasises the need for efficient, secure, and citizen-centric digital services. A key aspect of this modernisation is transforming financial processes to improve payment efficiency, security, and transparency.

Qippay’s Open Banking API-based architecture aligns with this strategy by enabling seamless integration with government finance systems, reducing reliance on outdated infrastructure and accelerating digital transformation. This supports the roadmap’s objectives by:

· Enabling faster deployment of digital payment solutions, reducing friction in government service delivery.

· Minimising the administrative burden for finance teams by automating reconciliation and reducing manual processes.

· Enhancing financial oversight, ensuring better fiscal management and transparency

By leveraging Open Banking infrastructure and solutions, the government can drive greater efficiency, cost savings, and improved citizen experiences, fully supporting the vision outlined in the Service Modernisation Roadmap.

Conclusion: The Future of Public Sector Payments

Open Banking presents a transformative opportunity for New Zealand’s public sector. By embracing A2A payments, government agencies can achieve cost savings, enhanced security, greater efficiency, and improved citizen experiences. With a strong regulatory framework supporting Open Banking, now is the time for the public sector to leverage these innovations and redefine how payments are managed in the digital age.

As the demand for seamless digital services grows, adopting Open Banking solutions isn’t just an option—it’s a necessity for a more efficient, secure, and financially inclusive public sector in New Zealand.

If you would like to find out more, please Get in Touch.