POLi payments in NZ: how POLi works for merchants after open banking

Short answer: POLi payments in NZ are online bank transfers: at checkout the customer picks their bank, authorises the payment in their own banking environment, and the merchant receives an immediate confirmation. POLi stopped operating in Australia in September 2023, but continues in New Zealand under local ownership by Merco Ltd, its former NZ distributor. In 2025 POLi announced open banking agreements with New Zealand's four largest banks (ASB, Westpac, BNZ and ANZ) and began moving merchants from its older connection method to bank-approved open banking connections.

This guide explains how POLi works for New Zealand merchants, what changed with open banking, when POLi makes sense compared with cards, and how to add it to your checkout.

What POLi is

POLi (often searched as "PoliPay NZ") is an account-to-account payment method. Instead of entering card details, the customer pays directly from their bank account. For merchants it combines two useful properties:

• Real-time confirmation: the merchant learns that the payment was made while the customer is still at checkout, so goods or services can be released immediately.
• No card scheme involvement: the payment is a bank transfer, so card interchange and card chargebacks do not apply.

POLi is popular for higher-value payments where card fees hurt margins or where customers prefer not to use credit cards: travel bookings, education fees, utilities, government and council payments, and online retail.

A short history: from Australia to New Zealand only

POLi was owned by Australia Post, which closed the Australian business on 30 September 2023. Merchants in Australia had to switch to alternatives such as PayTo and other bank-transfer methods. In New Zealand, Merco Ltd, which had been the master distributor of POLi, acquired local ownership and kept the service running.

For a long time POLi worked by having the customer enter their internet-banking credentials into a POLi interface, which then completed the payment on the customer's behalf. Consumer groups and banks criticised this approach because customers shared their banking credentials with a third party. That is the background to the open banking changes below.

What changed with open banking

New Zealand has been building an open banking framework through the Payments NZ API Centre standards and, more recently, the Customer and Product Data Act and its open banking regulations, which began applying to the largest banks from December 2025. Under this model, accredited third parties connect to banks through standard, bank-approved APIs instead of using customers' credentials.

POLi announced agreements first with ASB and Westpac, then with BNZ and ANZ, and reported that more than 1,300 merchants had been transitioned to the ASB and Westpac open banking connections, with ANZ and BNZ to follow. For merchants this means the same payment method on a more robust and bank-sanctioned connection; for customers it means authorising payments with their bank rather than handing over their login.

Check POLi's merchant documentation for the current list of supported banks and the status of each connection before you plan a launch.

POLi vs cards for NZ merchants

• Cost: account-to-account payments usually cost merchants less than card acceptance on large tickets, because there is no interchange. Confirm actual pricing with POLi or your payment provider.
• Disputes: there are no card chargebacks. That also means customers rely on the merchant's own refund policy, so be clear about it.
• Refunds: refunds are processed separately, typically by bank transfer from the merchant to the customer, not by "reversing" the POLi payment.
• Conversion: customers who do not want to use a credit card, or who are paying large amounts, often prefer paying from their bank account. Customers who expect card rewards may still prefer cards.
• Recurring payments: POLi is designed for one-off payments; for subscriptions you will usually need cards or direct debit.

Most merchants offer POLi alongside cards rather than instead of them. If you use a card gateway such as Windcave, check whether it can present POLi in the same checkout.

Security and fraud considerations for merchants

Account-to-account payments remove card fraud such as stolen card numbers, but they do not remove fraud altogether. Points to cover in your risk set-up:

• Authorised push payment scams: a customer may be tricked into paying a fake shop that imitates yours. Make your legal name and the payee name customers see in their bank as recognisable as possible, and publish official payment channels on your website.
• Account takeover: if a customer's bank login is compromised, payments can still be made from their account. Watch for unusual order patterns, new delivery addresses and high-value first orders.
• Refund abuse: without chargebacks, fraudsters may instead request refunds to a different account. Refund only to the originating account unless you have verified the change.
• Data handling: keep only the payment references and statuses you need for reconciliation and support; do not store customers' banking details beyond what your provider supplies (see data minimisation in payments).

Who typically uses POLi

POLi is most common where customers pay larger, one-off amounts and value a direct bank payment: airlines and travel agents, education providers, utilities and telecoms, local and central government services, and online retailers selling higher-value goods. It is less common for small impulse purchases, where cards and digital wallets remain faster for customers.

How to add POLi to your checkout

1. 1.Choose the integration route: directly with POLi, or through a payment gateway or e-commerce platform that already supports it.
2. 2.Complete merchant onboarding: company details, bank account for settlement, website review and the products or services you sell.
3. 3.Integrate: most providers offer a redirect flow where the customer chooses POLi, completes authorisation and returns to your site with a result.
4. 4.Handle notifications: confirm the payment status server-to-server before fulfilling the order; do not rely only on the customer's return to your site (see webhook duplicates and event order).
5. 5.Reconcile: match POLi transaction references to bank settlement and orders daily (see daily payment reconciliation).
6. 6.Write a refund process: who approves refunds, how they are paid and how customers are notified.

Alternatives and complements in New Zealand

• Cards and wallets: debit and credit cards, Apple Pay and Google Pay via card gateways; see card acquiring and gateways.
• Other open banking providers: as the API Centre ecosystem grows, more accredited providers offer bank payments; browse open banking providers and the open banking method page.
• Manual bank transfer: still common for invoices, but slower to confirm and harder to reconcile than POLi.

For cross-market merchants, our overview of local payment methods by region shows how account-to-account payments compare across countries.

FAQ

Is POLi still available in New Zealand?

Yes. POLi closed in Australia in September 2023, but continues in New Zealand under local ownership by Merco Ltd.

Is POLi safe to use?

POLi has moved its main bank connections to bank-approved open banking APIs, starting with ASB and Westpac and followed by BNZ and ANZ. With these connections customers authorise payments with their bank rather than sharing banking passwords with a third party. Check with your bank if you are unsure which method is used.

Which banks support POLi in NZ?

POLi has announced open banking agreements with ASB, Westpac, BNZ and ANZ. Other banks may be supported through different connections. Always check POLi's current bank list.

Can POLi payments be charged back?

No card-style chargebacks apply because POLi is a bank transfer. Refunds are made by the merchant according to its own policy.

How do I find a payment provider in New Zealand?

Use the Nominal hub catalog to compare providers by method and region, and contact them directly. Nominal hub is a directory, not an intermediary.