Frequently Asked Questions
Q. What is the New Payments Platform?
The New Payments Platform is new infrastructure that will enable customers of different banks to make and receive real-time payments, 24 hours a day and seven days a week. The Platform’s data capabilities means it has the potential to do so much more than enable near real-time payments. As businesses continue to digitise their back offices and enable rich data services for consumers, delivered digitally, the Platform will enable services to be delivered in the way today’s consumers expect.
Q. What can the New Payments Platform do?
Four key features underpin the New Payments Platform:
- Speed – the ability to make payments in real time, with close to immediate funds availability to the recipient
- 24/7 availability – the ability to make and receive payments 24/7, outside normal banking hours
- Data Enriched – the ability to send more complete remittance information with payments
- Simple Addressing – a system called PayID that enables consumers to more easily address payments to any recipient using an identifier like a phone number, email address, ABN or an organisational identifier
Additional features will become available overtime with the development of new overlay services.
Q. When will the platform launch?
The industry has a complex and thorough testing regime to complete before a decision is made to make the New Payments Platform, PayID and Osko publicly available. Subject to this testing, we expect the NPP central infrastructure to Go Live by the end of 2017, with Participants launching services to their customers in early 2018.
Q. What is a PayID?
A PayID is something easy to remember, like a phone number, email address or an ABN, that you can securely link to your bank, credit union or building society account. Then when you want somebody to transfer funds into your account, you can give them your PayID instead of your BSB and account number. Click here to find out more about PayID.
Q. What financial institutions are involved in New Payments Platform?
We expect about 50 banks, credit unions and building societies – big and small – to be connected to the platform when is launches in early 2018, with more joining later in the year. As we get closer to the launch a list of participating financial institutions will be made available.
Q. Who is building the New Payments Platform?
NPP Australia Limited (NPPA) was formed in December 2014 to oversee the build and operation of the NPP. The company is owned by the 13 financial institutions participating in the NPP. The Board comprises representatives from the participating institutions, with an independent chair Paul Lahiff. Adrian Lovney is the inaugural CEO of NPP Australia.
In December 2014, NPPA signed a 12-year contract with SWIFT to design, build and operate the basic infrastructure. SWIFT was appointed the successful vendor by the NPP Program following a highly competitive global tender process.
The RBA’s Fast Settlement Service (FSS) will be a new service of the Reserve Bank Information and Transfer System (RITS) (governed by the RITS Regulations and Conditions of Operation) supporting settlement of payments from the NPP. The FSS will provide line by line settlement of individual Settlement Requests received via the BI and provide very fast settlement processing on a 24/7 basis.
In October 2015, NPPA reached agreement with Australia’s premier bill payment system provider – BPAY – to deliver the first overlay service to use the NPP. Osko by BPAY will represent an innovative, compelling proposition for customers to participate in the NPP once it is launched.
The NPP Steering Committee appointed KPMG to act as the Program Management Service Organisation (PMSO) in 2013 to ensure a well-resourced, efficiently planned, highly collaborative industry Program.
Q. What will customers be able to do?
The NPP infrastructure will enable consumers, businesses and government to make faster, simpler smarter payments.
Initially customers will be able to use Osko, delivered by BPAY, to harness the benefits of the NPP. It will be a convenient and accessible service for consumers to send payments from an account at their financial institution, 24/7/365, to payees using a PayID. Osko will provide fast availability of funds, rich data and confidence in delivery.
The customer experiences the NPP can bring to life will only expand and improve over time as other Overlay Services join the platform.
Q. Will the New Payments Platform enable customers to switch bank accounts?
Customers who create a PayID will be able to switch payments between accounts more easily. While the New Payments Platform has not been designed to support account switching, it does empower consumers to redirect payments via their PayID to other accounts through a simple and safe process.
Q. What is an Overlay Service?
An overlay service is a product or service that uses parts of the Basic Infrastructure to provide tailored payment experiences between the customers of Participants. They could be offered either by connected Participants or via partnerships with other organisations to enable access to the New Payments Platform.
Q. What kind of products and services could be offered as an ‘overlay service’?
The possibilities are endless really. Speed will be a key differentiator, as will the convenience offered by the addressing service and the data that can be transmitted along with payment. It’s likely that the transmission of data along with payments will mean that a key focus will be on business applications, as well as the opportunities in industry verticals, such as funds management, in and around the stock exchange, or in the insurance and superannuation industry. The NPP presents an opportunity to help solve some of common pain points such as efficiency, improved customer service and reducing costs.
Q. How much will the New Payments Platform cost consumers?
Pricing for transactions on the New Payments Platform will be determined by the participating financial institutions. But it’s in everyone’s interest to have a Platform that supports many transactions, so pricing is not expected to be a major issue.
Q. How much will the New Payments Platform cost Participants?
NPP Australia fee charges and componentry costs are available to prospective Participants and Overlay Service Providers on request (under NDA), but as a guiding principle NPP Australia expects the NPP infrastructure to be economically self-sustaining (not profit-maximising).