New Zealand's Exchange Settlement Account System, known as ESAS, serves as the country's principal high-value payment system, processing approximately NZ$24.8 billion in daily transactions. Owned and operated by the Reserve Bank of New Zealand on a cost-recovery basis, ESAS provides real-time gross settlement of interbank obligations in central bank money, underpinning the stability of New Zealand's financial system.
The system underwent a significant upgrade in July 2025 when the RBNZ, working with technology partner Nexi, deployed ESAS version 7. The upgrade brought the system into compliance with current ISO 20022 messaging standards and the latest SWIFT protocols, aligning New Zealand with the global trend toward standardized payment messaging. The migration from version 6.8 to version 7 was a multi-year project that the RBNZ described as essential for ensuring ESAS remains interoperable with international payment systems and meets evolving industry requirements.
In March 2025, the RBNZ expanded eligibility for direct ESAS participation following a comprehensive access review that included two rounds of public consultation. Under the revised criteria, licensed non-bank deposit takers and other qualifying entities can now apply for settlement accounts, moving beyond the system's traditional base of registered banks. The expansion reflects a broader policy objective of promoting competition and innovation in New Zealand's payment landscape while maintaining the safety and integrity of the settlement system. By April 2025, the RBNZ was actively welcoming applications from newly eligible institutions.
ESAS settles both large-value interbank transfers and the net obligations arising from New Zealand's retail clearing systems, including the Settlement Before Interchange system operated by Payments NZ. The system maintains high availability, with reported uptime of 99.99 percent during core operating hours.
New Zealand's dollar settlement ecosystem is comparatively concentrated, with a small number of registered banks holding Exchange Settlement Accounts. The access expansion to non-bank deposit takers could gradually diversify the participant base, although the RBNZ has emphasized that new participants must meet robust operational and financial requirements. As the first wave of non-bank applicants moves through the onboarding process, the practical effects of the expanded access framework will become clearer through 2026.
The RBNZ has positioned these changes within its wider financial market infrastructure strategy, which includes exploring the potential for new forms of digital money and ensuring New Zealand's payment systems remain resilient and fit for purpose. With the version 7 upgrade complete and the access framework modernized, ESAS enters 2026 as a more open and technically current platform for high-value interbank settlement.