Our payment systems team offers a comprehensive service, consisting of experts across a number of disciplines, including banking and finance, technology, privacy, competition/antitrust, consumer law, economic regulation and law reform.
We understand the practical operations of payment systems and how these fit within the New Zealand regulatory landscape. Our work spans the full spectrum of payments advice, including in relation to payment service and software providers, payment switches and payment gateways, and arrangements for sponsor banks and merchant acquirers and electronic transactions. We are also at the forefront of developments in this area, advising on New Zealand's move towards open banking and technological advances overseas.
As with other areas of financial regulation, payment systems are heading for more extensive regulation. The Reserve Bank has recognised the economy's heavy reliance on certain key financial market infrastructures (FMIs), including payment systems, such as NZ Clear and the Exchange Settlement Account System, and in June 2019 it will release an exposure draft of the legislative framework aimed at regulating those 'systemically important' FMIs.
Internationally (eg Australia, UK and the EU), the trend has been towards heavier economic regulation of payment systems, including to promote competition.
Open banking refers to technology (typically application programming interfaces, or APIs) used by banks and financial institutions to share customer data with third party service providers, enabling the provision of a range of different services, from alternative payment mechanisms to enhanced budgeting and accounting software. Open banking has the potential to increase competition in the financial services industry and give customers greater control over their personal data. However, open banking also raises concerns around privacy and cyber-security, which will require careful consideration.
The UK, EU and Australia have already taken steps to implement open banking, and the New Zealand Government has been watching closely. The Minister of Commerce and Consumer Affairs has been encouraging the industry to continue its progress towards developing an open banking framework. Most recently, this has led to Payments NZ releasing its API Centre, an industry driven initiative designed to centralise payment API standards in New Zealand and provide a sandbox environment for developers to test their open banking products against those standards.
Our payment systems experience includes:
Partner, Competition and Antitrust
Partner, Technology and Telecommunications
Partner, Banking and Finance
Senior Associate, Banking and Finance
Partner, Government, Public Law and Policy
Senior Associate, Corporate Advisory
Banking and Finance
Technology and Telecommunications