New credit card benefits as Airpoints partnership ends

• Kiwibank and Air New Zealand decide to end Airpoints partnership.
• Regulatory and economic impacts affecting the value and viability of the Kiwibank Airpoints credit card programme.
• Kiwibank launch enhanced Platinum Visa card with domestic¹ and overseas travel insurance to better meet the needs of more customers.

Over the past decade, the regulatory and economic landscape has changed significantly. Increased costs and changes to interchange fee regulations have impacted the value and viability of the Kiwibank Airpoints credit card reward programme, with further regulatory changes expected.

Mark Stephen, Kiwibank’s Chief Customer Officer - Retail, says:

"Kiwibank prioritises investment that provides value to the greatest number of customers. After a thorough review, we concluded that these products are no longer the most effective way to achieve this."

"The alternative to closing the products would be to reduce the rate at which points are earned or to pass on increased costs through higher interest rates – options we believe are neither fair nor in customers’ best interests, as it would mean that customers who do not repay their balance in full every month would further subsidise rewards for those who do.

"Based on customer feedback about what they would value in a new card, our enhanced Platinum Visa now offers a range of benefits that reflect this, including a lower interest rate and more interest-free days. For those who enjoy travelling, the card offers international travel insurance and new domestic travel insurance benefits¹.

“We also offer a Zero Visa card, with no annual fee and a competitive 12.90% p.a. interest rate, designed for Kiwi seeking cost-effective banking solutions,” says Mr. Stephen.

To support customers, we're providing as much notice as possible. Customers can continue to earn Airpoints until 31 October, and for continuity, customers will move to a Platinum Visa card automatically.

Notes to editors about interchange fees:

• In 2022, the Commerce Commission introduced new pricing standards under the Retail Payment Systems Act to reduce interchange fees for transactions. While some of the increased costs were passed on to cardholders, a significant portion was covered by the card issuers.
• The Commerce Commission has proposed further reductions to interchange fees and has confirmed their decision will be communicated by 31 July, with implementation on 1 December for Retail Credit or Debit cards issued in New Zealand (and 1 April 2026 for any other card types brought into scope).
• Kiwibank supports the goal of the Retail Payment Systems Act to promote competition and efficiency. However, lowering interchange fees as proposed could further reduce the variety of payment options available to consumers and might lead to a less efficient payment system, contrary to the Act's goals.
• The proposed interchange fee cap could significantly affect service offerings, especially credit card rewards programmes, which the Commerce Commission has acknowledged as an outcome.
• The proposed interchange fee caps also lack sufficient evidence. The Commerce Commission's Draft Decision relies on fee caps from larger regions like Australia, the EU, and the UK. These larger markets benefit from economies of scale, making their costs lower per transaction. Therefore, interchange fees in New Zealand should be higher than in those jurisdictions.

¹From 1 July 2025, domestic travel insurance benefits will be available. Eligibility criteria apply.