Sharesies plans to introduce payment cards in 2025 in partnership with global payments behemoth Mastercard.
The wealth management platform – which now offers a range of financial services – says the partnership will “spice up” payments competition.
But the move into payment cards doesn’t appear to be a sign that Sharesies is interested in jumping into banking per se, according to one of its founders.
Sharesies founder and co-CEO Leighton Roberts said how people approach and manage their spending can be one of the “biggest levers” for growing wealth in the long term.
Mastercard had an “incredible track record” in building secure, seamless and smart payment experiences, he said.
“Their approach to partnering with fintech is world class, and we are excited to work with the team as we continue to scale our business both at home and abroad,” he said.
Ruth Riviere, the Country Manager for Mastercard New Zealand and the Pacific Islands, said the global payments firm was committed to “fostering innovation and growth within the fintech sector in New Zealand”.
“The collaboration with Sharesies is a testament to this, as we work together to introduce new ways to pay which deliver an awesome customer experience and contribute to the financial empowerment of New Zealanders,” she said.
Sharesies said both Mastercard and Sharesies have been involved in work around supporting open banking in New Zealand and coming together brought potential to “accelerate payments innovation even further”.
“A consumer payments option is in line with the evolution of the Sharesies ecosystem where managing and growing wealth are designed to be integrated,” Sharesies said.
“We see this as a way to match and better what customers in other countries are experiencing,” Roberts said.
Sharesies the Bank?
Interest.co.nz asked Sharesies if entering the payments space meant the platform was considering – or at least interested in – expanding its services to include banking in the future. With the Reserve Bank potentially reducing the capital requirement to become a bank, other fintechs such as Dosh, are looking to obtain banking registration.
According to Sharesies’ Leighton, it looks like a no. He said Sharesies was growing its services in order to build long-term wealth for its customers.
“Spending is one of the biggest levers for this,” he said.
“We don't have a banking licence, nor plans to apply for one now, but as a wealth app our aim is to be a one-stop shop for wealth, where saving, investing, insuring and spending are integrated.”
Sharesies currently has over $3.5 billion in funds under management and 700,000 users across New Zealand and Australia.
The platform has been steadily adding to its product offering over the last 18 months and on top of investing in shares, Sharesies users now have access to savings accounts, KiwiSaver and car insurance.
Over $1.71 billion was traded through on the platform during Sharesies’ September quarter, the highest quarterly trading volume in its seven-year history. It beat the platform’s previous all-time trading high of $1.28 billion in the June quarter.
Mastercard and Visa are two of the largest global payment operators in the world.
In New Zealand, Westpac, TSB and the Co-operative Bank issue Mastercard cards while ANZ, ASB, BNZ and Kiwibank issue Visa cards. SBS Bank issues both Mastercard credit cards and Visa debit cards.
The Commerce Commission – which regulates the Visa and Mastercard credit and debit networks under the Retail Payment System Act 2022 – says $95 billion of card payments are processed annually by Mastercard and Visa.
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