Retailers are banking gains from the country’s move to seven-day payments, with an average of $200 million in EFTPOS payments settled to merchants each weekend over the system’s first year.

Until May last year, payments between banks only occurred on weekdays.

Payments NZ led the shift to seven-day payments alongside banks and the Reserve Bank of New Zealand Te Pūtea Matua.

The project involved upgrades to systems and processes built around the traditional five-day business week.

Payments NZ chief executive Steve Wiggins says the first year’s figures show the upgrade has paid dividends for the New Zealand economy.

“Our economy runs seven days a week so it’s important that businesses can take payments and see money settled into their accounts on the same basis,” says Mr Wiggins.

“Retailers are now receipting $200 million into their accounts over the weekend instead of having to wait until Monday, or sometimes even a day or two later during public holiday periods.”

EFTPOS payments settled to merchants are part of around $1 billion now moving between bank accounts each weekend, including automatic payments, bill payments and direct debits and credits.

Mr Wiggins says with weekend payments no longer held up until the next business day, transaction volumes on Mondays have fallen by 30 percent over the past year.

“Seven-day payments have reduced risk across the financial system because we no longer have a backlog of payments each weekend going through systems on a Monday.

“We’re now seeing value moving quickly and smoothly through the economy regardless of the day of the week, and that’s a great enabler for business and economic growth.”

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