One of the biggest banks in New Zealand is pioneering a new purchase scheme that will let Kiwi cardholders convert their small change into substantial savings.

Auckland-based ASB Bank Ltd. said in a statement that it would let its customers round up the spending on EFTPOS and Visa debit card transactions and save the difference in a separate account.

EFTPOS is the brand name of country-specific payment networks in Australia and New Zealand that process credit card, debit card and charge card payments at POS terminals and ATM transactions.

ASB only issues EFTPOS and Visa cards.

Under the scheme, cardholders will be able to round up their EFTPOS and Visa debit card transactions to the nearest multiple of NZ$1 (US .75), NZ$2, NZ$5 or NZ$10, depending on their savings goal.

For example, if on a NZ$2.60 purchase, the cardholder opted to round up to the nearest dollar, the amount will would be rounded up to NZ$3, with NZ$0.40 sent to a nominated savings account overnight.

The bank in its note has estimated that the average customer making three transactions a day could save between NZ$328 and NZ$4577 per year based on the rounding option they chose.

The bank did not directly respond to PaymentsSource.

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