Niue's Chamber of Commerce says the just confirmed deal between the government and Kiwibank will modernise the country's banking system, with internet banking and eftpos available for the first time.
The Chamber's Business Development Manager says banking has been constrained over the last few years in Niue, with only a manual system operating and a lack of internet services.
Elliott Kirton says the Kiwibank agency will take over from the Bank South Pacific at the end of April.
He says the change is good news for customers in Niue, tourists and families living overseas, who will all soon be able to access accounts more easily.
"From a business perspective it opens up a whole lot of modern banking services to Niuean businesses that they haven't been able to utilise. At the same time we think it will increase the spend on island for the tourists and for that reason the general public here have been very excited by that change and supportive of it."
Elliott Kirton says Niueans have demanded better services for a long time.