Akahu, Open Banking and Lightning Pay

By the Lightning Pay Team

Updated Sept 9, 2024

 

What is Akahu? 

To explain Akahu we first have to start by talking about the banking system. For many years the banking systems in NZ operated in their own silos completely separated from each other. Do you remember when bank transfers used to take 24 hours to go through?

The banks have now more recently been encouraged to adopt "open banking" standards, which would allow for customers to create "connections" to their data with providers who they choose, to enable a thriving ecosystem of new financial technology products. This includes everything from instant low cost payments to tax and budgeting apps and many more to come.

Each bank has recently added banking "API" access (a language to allow computers to talk to computers). Each bank has it's own language and one company has spent the time to do the legwork to connect to all the banks to provide a single unified API to all of them. That company? Akahu.

 

What do we use Akahu for?

There are a number of key benefits to users and to Lightning Pay by adopting an Open Banking platform like Akahu.

Faster Payments

  • With your explicit instruction, we can instantly send payments on your behalf.
  • This means you can go from NZD in your bank account to bitcoin in your Bitcoin Lightning Wallet in a matter of seconds.

More Private, and Faster Onboarding

  • With your permission we can use Akahu to get information from your bank, to verify your personal data, including your name and address.
  • This allows us to conduct our obligations under NZ Finanical Regulations, without sending your data to third-parties.

For more information on our use of Akahu and your privacy, please view our Privacy Policy, and our article on Privacy on the Lightning Network using Lightning Pay.

To find out more about Akahu read here.

 

How does Akahu work?

Akahu provides a simple way for you to connect your bank account to Lightning Pay via API, while keeping you in control of your data. You can always change permissions for your Akahu connected financial accounts by visiting MyAkahu.

  • You choose what accounts to connect to Lightning Pay
  • You can revoke these connections at any time by going to "My Account" at Lightning Pay, or through Akahu directly.
  • Akahu and Lightning Pay will obtain your explicit consent and direction before carrying out any instruction on your behalf.
  • Neither Akahu or Lightning Pay will sell or rent your data to third parties.

 

I am nervous about connecting my bank to Lightning Pay

To ensure things are as safe as possible in your use of Lightning Pay and Akahu, our users (and our team) have a few tips that might help you keep your financial data secure.

  • You can create a specific account at your bank for using Akahu and Lightning Pay.
    • Connect only this account toLightning Pay
    • Send only funds you intend to use for this purpose to that account.
  • Check your Akahu account regularly by visiting MyAkahu, and manage your connections.

FAQ

I'm having trouble connecting my bank account to Lightning Pay....

There are a number of reasons this may be occurring. Each bank has implemented open banking API standards a little differently, or perhaps not at all. Akahu provides a good overview of banks and account types that are supported, along with some troubleshooting tips.

Bank Connection Troubleshooting