Andrew Bayly Announces Rollout of Confirmation of Payee Service for Safer Bank Payments

“In my open letter to the banks in February, I outlined several expectations for the sector, including the introduction of a Confirmation of Payee system,” Bayly said.

A new payment verification system is set to make banking transactions safer for New Zealanders, Commerce and Consumer Affairs Minister Andrew Bayly has announced. The Confirmation of Payee (CoP) system will allow customers to verify that the name of the recipient matches the bank account details before completing a transaction, providing an added layer of protection against payment errors and fraud.

“In my open letter to the banks in February, I outlined several expectations for the sector, including the introduction of a Confirmation of Payee system,” Bayly said. “I’m pleased to see progress being made and look forward to further developments.”

The CoP service is designed to give Kiwis greater peace of mind by reducing the likelihood of sending funds to the wrong person. It serves as a practical step in enhancing the security of digital banking and protecting consumers from potential financial crime.

New Zealand’s retail banks will begin a phased rollout of the CoP system in November 2024. Full implementation across all digital banking platforms, including mobile apps, is expected by Easter 2025.

“This phased approach ensures the service is carefully tested and integrated across different platforms, allowing consumers to experience its benefits without disruption,” Bayly noted.

The CoP system is part of the Government’s broader initiative to work alongside the banking sector in improving financial security for all New Zealanders.