Recent research has uncovered that 44% of New Zealand businesses face late customer payments, leading to significant financial strain.
The situation is compounded by the fact that businesses paid over a billion dollars in card fees last year.
Now Māori owned company Blinkpay, which also conducted the research, has developed an innovative ‘open banking’ system aimed at eliminating late payments. The company has already secured partnerships with four major banks— ANZ, ASB, BNZ, and Westpac — which cover 85 to 90 per cent of New Zealand’s banked population. Adrian Smith (Ngāpuhi, Ngāti Hine) co-founder of Blinkpay, says this is a major business issue.
“In a cost-of-living crisis, that just doesn’t seem right, so we are finding a better way to enable whānau, Māori businesses, and anyone to process payments and get paid, so they can then conduct their business in a more efficient way.
“We’ve started with the big four banks, and the next layer we are now working on is the merchants, so you need bank acceptance and then merchants that will accept your new payment type,” Smith explained.
Report findings from a survey of 400 businesses
- Late payments: 44.3%
- High service fees: 39.5%
- Fraud and security concerns: 33.5%
- Customer disputes: 32.3%
Early success
Whale Watch Kaikōura, one of Blinkpay’s first Māori-owned clients, is already benefiting from the new payment system.
“If you make it easier for a customer to pay, then the likelihood of them paying increases,” shared services head Wiremu Stone (Ngāi Tahu) said.
With the support of New Zealand’s largest banks, Blinkpay aims to extend its service to more businesses, helping them navigate financial challenges more effectively.
As Smith put it, “Enabling pakihi Māori to do business more efficiently and get paid quickly, then that’s a win!”
Stone added, “Cash is king, right, especially in times like these, so the earlier we can get cash, the earlier we can manage our business more efficiently and effectively.”