PayPoint's Obconnect wins New Zealand banking system contract

PayPoint announced that its Open Banking technology subsidiary Obconnect had been chosen by the New Zealand Banking Association (NZBA) to deliver the confirmation of payee ecosystem in New Zealand.

The London-listed firm said the development came after its strategic investment in Obconnect in August, aimed at enhancing its Open Banking platform and expanding opportunities.

It said the contract would see Obconnect provide confirmation of payee services to major New Zealand banks starting in November.

Participating banks would include ANZ and Westpac, Commonwealth Bank-owned ASB, National Australia Bank subsidiary BNZ, and Bank of China, among others.

The service would allow customers to verify that the account name matched the account number before completing domestic payments, adding an extra layer of security to the transaction process.

“We are delighted that Obconnect has won the contract to deliver the confirmation of payee ecosystem in New Zealand, coming soon after our strategic investment was announced,” said chief executive officer Nick Wiles.

“Confirmation of payee and Open Banking is important to the future of the PayPoint business and our investment in Obconnect will enable the group to strengthen its position further in this fast-growing sector.”

At 1214 BST, shares in PayPoint were up 0.3% at 672p.

Reporting by Josh White for Sharecast.com.