Payments 101
Pay by Bank in New Zealand: What It Is and How It Works
Pay by Bank is a payment method that lets customers pay directly from their bank account — no card required, no card fees, and usually faster settlement. Here's everything merchants need to know about Pay by Bank in NZ.
What is Pay by Bank?
Pay by Bank (also called account-to-account payment or bank transfer payment) is a method where customers authorise a payment directly from their online banking. Unlike a card payment that routes through card networks like Visa or Mastercard, Pay by Bank is a direct transfer between two bank accounts.
In New Zealand, Pay by Bank is powered by Open Banking APIs — specifically through platforms like Akahu, which provide secure, regulated connectivity between payment apps and NZ bank accounts. The customer never shares their internet banking credentials with the merchant.
Which banks support Pay by Bank in NZ?
Via Tillify, customers can make Pay by Bank payments from all five major New Zealand banks:
Note: ANZ has a manual review process for new merchant bank accounts. This typically takes 2–5 business days. Other banks approve instantly.
Pay by Bank vs card payments: what's the difference?
| Feature | Pay by Bank | Card Payment |
|---|---|---|
| Processing fees | Lower (no card network fee) | Higher (~1.5–2.9% card fee) |
| Settlement speed | Hours (same day) | 2–3 business days |
| Chargeback risk | None | Yes (card chargebacks possible) |
| Customer experience | Phone banking app | Tap, swipe or scan card |
How to accept Pay by Bank payments as a NZ merchant
With Tillify, accepting Pay by Bank is built in from day one. You don't need a separate merchant facility or bank agreement — just a Tillify account and a linked NZ bank account.
- 1Create a free Tillify account and connect your NZ bank account for payouts.
- 2Generate a QR code for your product, service, or invoice.
- 3Customer scans the QR code and selects Pay by Bank.
- 4They authorise the payment in their banking app — funds go directly to you.
- 5You receive instant confirmation and the money settles within hours.
Start accepting Pay by Bank in NZ
Lower fees, faster settlement, zero chargebacks.
Create free account