2025: Embracing Transformation in Payments

As we step into 2025, I want to take a moment to reflect on the incredible progress we’ve made in the payments industry and look ahead to the opportunities and challenges this year—and beyond—will bring.

The past year has been transformative for payments in the Pacific, with significant regulatory developments, technological advancements, and a renewed focus on security and innovation. The way we pay, and the way we’re paid, continues to evolve at an extraordinary pace. This transformation offers us the chance to create a payments ecosystem that is faster, safer, and more inclusive for everyone.

Looking Back at 2024: Laying the Foundations

In 2024, we saw major advancements across both Australia and New Zealand.

In Australia, the government’s Strategic Plan for the Payments System set clear priorities for creating a safer, more resilient, and innovative payments environment. Key initiatives like the ISO 20022 migration helped improve interoperability and enriched the payment experience with better data. At the same time, the industry began preparing for the transition to Advanced Encryption Standards (AES), ensuring payments remain secure in the face of emerging threats.

In New Zealand, open banking became a reality, with banks committing to deliver APIs that enable greater consumer choice and new financial products. There was also a strong focus on creating next-generation payment infrastructures to support real-time payments and foster innovation.?

These developments were just the beginning. They’ve laid the groundwork for a dynamic future in payments, where technology and customer needs are driving new opportunities.

What’s Next for 2025: A Year of Big Opportunities

The coming year will be pivotal. It’s not just about meeting new regulatory requirements or deploying the latest technologies—it’s about rethinking what’s possible and delivering real value to businesses and consumers alike.

• Strengthening Trust Through Security - With the introduction of payee verification systems in Australia and New Zealand, trust in digital payments will take a leap forward. These systems will reduce fraud and errors by ensuring payment details are verified before transactions are processed. This will build greater confidence in digital payments, particularly for businesses managing high transaction volumes.
• Faster, Smarter Payments - The shift toward real-time payments in New Zealand is accelerating, with work underway to ensure systems are equipped for instant, always-on transactions. For businesses, this will mean faster cash flow and improved customer experiences. Real-time capabilities will also open the door to new innovations in financial services.
• Modernizing Legacy Systems - As Australia begins the phased transition away from the Bulk Electronic Clearing System (BECS), the payments ecosystem will shift to more advanced, secure, and data-rich infrastructures. This modernization will ensure businesses can keep pace with consumer expectations and global payment trends.
• Open Banking and Open Finance - Open banking will continue to expand in both markets, empowering consumers with greater control over their financial data and enabling businesses to offer more tailored payment solutions. The next step—open finance—is already on the horizon, broadening opportunities for innovation across the financial ecosystem.

Beyond 2025: A Shared Vision?

While 2025 is set to be a landmark year, the transformations we’re seeing now will shape the industry for years to come. Over the next 3-5 years, we can expect:

• Real-Time Payments as Standard - Real-time capabilities will become the norm, enabling businesses to operate more efficiently and provide better customer experiences. This shift will require platforms that can handle the speed, volume, and complexity of 24/7 payment environments.
• Advanced Fraud Prevention - With fraud becoming more sophisticated, payments systems must evolve to stay ahead. Integrated AI-driven fraud detection and prevention will be essential for safeguarding transactions while maintaining a seamless customer experience.
• Central Bank Digital Currencies (CBDCs) - Both Australia and New Zealand are exploring CBDCs, which have the potential to reshape how we think about money and payments. While these are still in the research phase, businesses should prepare for how they may integrate with this next wave of innovation.
• Seamless Regulatory Compliance - The regulatory landscape is evolving rapidly, and businesses will need to adapt quickly to new requirements. Platforms with built-in compliance capabilities will reduce complexity and ensure businesses can focus on delivering value.
• Open Finance Ecosystems - The shift from open banking to open finance will enable businesses to create innovative, data-driven solutions that provide deeper value to consumers and strengthen customer relationships.

Shared Commitment?

As we navigate these changes, one thing is clear: the right technology will be the foundation of success. Organizations that embrace future-ready payment solutions will have the agility to adapt, innovate, and lead. Whether it’s implementing real-time capabilities, enhancing security, or preparing for open finance, businesses need solutions that can scale with them and evolve as the industry transforms.

At the heart of all these changes is a shared commitment to creating a better payments ecosystem—one that’s inclusive, efficient, and secure. As your trusted partner in payments, my focus is on helping you navigate this dynamic landscape with confidence. Together, we’ll harness the opportunities ahead to deliver exceptional value to your customers and unlock new growth opportunities.

Here’s to a successful 2025 and beyond. Let’s make this year a transformative one for payments.