Real-Time Payments Could Unlock $271 Million of Additional GDP to New Zealand’s Economy by 2027
01 December 2022 - 10:00PM
Business Wire
- Exclusive Cebr economic impact study reveals macroeconomic
benefits and cost savings for consumers and businesses if real-time
payments were to be introduced in New Zealand
New Zealand’s economy could benefit from additional economic
growth of $271 million, or 0.1%, by 2027 — if the country were to
introduce a domestic real-time payments scheme, according to a
study by the Centre for Economic and Business Research (Cebr) —
commissioned by ACI Worldwide (NASDAQ: ACIW), a global leader in
mission-critical, real-time payments software, and Payments NZ, the
payments industry association responsible for the governance of New
Zealand's core payment systems.
The study models three scenarios — slow, moderate and fast
growth — and uses data from ACI’s Prime Time for Real-Time report
to calculate cost savings and additional GDP growth for Aotearoa if
real-time payments were to be introduced in 2025. However, the
untapped benefits of real-time payments are much higher. According
to the Cebr, the theoretical impact of all payments being real-time
could add $6.5 billion, or 2.2%, to formal GDP by 2027. However,
these are theoretically modeled benefits; they do not suggest that
there is no place for non-instant electronic payments or
paper-based payments in the future.
Aotearoa currently does not have a real-time system in place,
but planning is underway. Payments NZ released a real-time payments
discussion document in November designed to broaden the
conversation regarding the key features, capabilities and design
components of future real-time infrastructure, which is part of a
broader payments modernization framework. The industry is actively
seeking perspectives and feedback on the rationale for significant
modernization of Aotearoa’s payment systems.
“Payments NZ has recently started to lead industry-wide
discussions about the real-time infrastructure and capabilities
which are crucial to the future of payments in Aotearoa. This
report is an important part of these discussions and provides
useful insight into the potential benefit real-time can bring,”
said Steve Wiggins, chief executive of Payments NZ.
“We view real-time payments as an important component of the
payments ecosystem of the future,” added Wiggins. “There are
several other projects Payments NZ is leading with the industry
which will make Aotearoa’s payments system truly world-class. This
includes moving the country to 365-day payments in 2023 and our
continued work on open banking through the Payments NZ API Centre.
Together, these projects will enable faster, simpler and more
secure payments for all of Aotearoa.”
ACI’s Prime Time for Real-Time report includes the most
comprehensive economic impact study of real-time payments to date
and reveals a clear correlation between real-time payments adoption
and economic growth.
“Our research shows that real-time payments drive economic
growth, innovation and the creation of digital and secure payment
ecosystems. They help businesses grow and thrive. Real-time
payments will make every Kiwi’s life a little bit easier,”
commented Chris Hill, head of pacific, ACI Worldwide. “With more
than 60 real-time payment schemes already live around the world,
the move is inevitable. The question isn’t if, it’s when.”
“Governments that advance the modernization of their national
payments infrastructure with real-time payments create a win-win
situation for all stakeholders in the payments ecosystem,” added
Hill. “Consumers and businesses benefit from fast, frictionless and
hyper-connected payment services, and financial institutions
future-proof their business in a highly competitive environment by
speeding up cloud-first and data-centric modernization. National
governments boost economic growth, reduce the size of their shadow
economy and create an impartial financial system for all.”
“By enabling money to transfer between parties within seconds
rather than days, real-time payments can significantly improve
overall market efficiencies in the economy and play an important
role in helping facilitate growth,” commented Owen Good, head of
economic advisory, Cebr. “Real-time payments improve liquidity in
the financial system and therefore act as a catalyst for economic
growth.”
Key figures of the economic impact study at a glance: (Based on
a hypothetical launch date of 2025)
Predicted cost savings for consumers and
businesses by 2026
- Slow growth: $7.1 million
- Moderate growth: $27.3 million
- Fast growth: $55.0 million
Predicted cost savings for consumers and
businesses by 2027
- Slow growth: $9.7 million
- Moderate growth: $41.3 million
- Fast growth: $100.1 million
Additional GDP growth by 2026
- Slow growth: $20.0 million (0.007%)
- Moderate growth: $62.0 million (0.022%)
- Fast growth: $135.7 million (0.049%)
Additional GDP growth by 2027
- Slow growth: $25.1 million (0.009%)
- Moderate growth: $91.2 million (0.032%)
- Fast growth: $271.2 million (0.095%)
Hypothetical macroeconomic benefit — additional GDP growth — if
all payments in NZ were real-time:
- 2026: $6,393 million (2.2%)
- 2027: $6,503 million (2.2%)
About ACI Worldwide
ACI Worldwide is a global leader in mission-critical, real-time
payments software. Our proven, secure and scalable software
solutions enable leading corporations, fintechs, financial
disruptors and merchants to process and manage digital payments,
power omni-commerce payments, present and process bill payments,
and manage fraud and risk. We combine our global footprint with a
local presence to drive the real-time digital transformation of
payments and commerce.
About Payments NZ
Payments NZ was formed in 2010 by the industry with the support
of the Reserve Bank of New Zealand. It governs Aotearoa New
Zealand’s core payment systems and manages the API Centre which is
leading opening banking in Aotearoa. Payments NZ is committed to a
world-class payments network and empowering Aotearoa’s payments
future.
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Payments, Inc., ACI Pay, Speedpay and all ACI product/solution
names are trademarks or registered trademarks of ACI Worldwide,
Inc., or one of its subsidiaries, in the United States, other
countries or both. Other parties' trademarks referenced are the
property of their respective owners.
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version on businesswire.com: https://www.businesswire.com/news/home/20221201005171/en/
Media Katrin Boettger
katrin.boettger@aciworldwide.com
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