Removing surcharges at the checkout is a hot topic in New Zealand right now.
The aim is clear: lower costs for merchants and, by extension, for Kiwi shoppers. But as Retail NZ pointed out in their open letter to Minister Simpson, simply eliminating surcharges doesn’t erase the underlying costs. If retailers are left to absorb those fees, risks of higher prices across the board could creep in, regardless of payment method.
The opportunity we shouldn’t miss
The good news is there’s a better, proven path that delivers cost relief that’s here already. Open banking-based payments—like Direct Pay—offer a secure, cardless way to pay that can meaningfully lower costs for both merchants and consumers. It’s not about picking sides in a regulatory debate; it’s about delivering practical, cheaper payment options today.
What Direct Pay brings to NZ merchants and consumers
- Cardless, open banking payments: We’re using established open banking APIs rather than traditional card networks, which means no card scheme fees.
- Faster settlement and simpler security: Funds settle largely overnight, and because there’s no card data stored or processed via card networks, PCI DSS considerations are different for the merchant.
- Clearer, broader coverage: Worldline has integrated APIs with all four major NZ banks, helping ensure scale and ubiquity for a real, nationwide impact.
- Direct Pay is already available on our Tap on Mobile solution and will roll out with enhanced capabilities to brick-and-mortar stores very soon.
Why this approach is a “win” for all
- Merchants get predictable, lower payment costs without having to pass higher prices to their customers.
- Consumers benefit from easier, cost-effective payment options with access to use across a broad network of merchants.
- The industry gains a practical, scalable solution now
How it works in practice
- It’s built on open banking APIs, not card networks, so it avoids card scheme fees.
- It leverages secure, safer payments – a bank app login keeps customers' payments secure and reduces fraud risks
- It delivers a straightforward path to adoption for both online and in-person payments, with governance and security controls-built in.
Open Banking in Action: Direct Pay Reducing Costs Now
Worldline will continue to support an environment that reduces costs for merchants and consumers, while maintaining security and resilience in the New Zealand payments system.
Regulation should protect consumers and reduce costs—but it shouldn’t delay practical, affordable payment options that exist today. Open banking-based Direct Pay is our concrete step toward lower checkout costs for NZ merchants and shoppers alike.
Let’s work together to bring affordable payments across NZ. Connect with the Worldline NZ team to start the conversation and see what Direct Pay and open banking can do for your business.