DINZ Submission: Digital Identity Considerations for Next Generation Payments

Submission by Digital Identity NZ to Payments NZ Limited

Digital Identity New Zealand (DINZ) has submitted recommendations to Payments NZ Limited on their consultation “Payments for the Next Generation,” focusing on how digital identity advances and regulatory changes can deliver tangible benefits to real-time payment processing.

DINZ emphasised that starting with a clearer understanding of data and the problems and opportunities that digital identity can address would dramatically help with prioritisation and configuration of the conceptual architecture design for next generation payments.

The submission highlighted that while verifiable credentials have significant potential to improve payment systems, their implementation requires careful consideration of problem domains rather than a one-size-fits-all solution. DINZ noted that the connections between digital identity technologies, strategic goals, and the architecture design were not clearly articulated in the consultation document.

Key points made in the submission include:

• Focusing on extending payment systems to serve unbanked communities
• Reducing fraud through better security measures
• Creating future-proofed alternatives to credit cards and other payment systems
• Designing an architecture that can adopt and adapt to digital identity advances

DINZ welcomed future opportunities to collaborate with Payments NZ on designing the next generation payments platform to leverage innovations in the digital identity space.