The NPP is payments infrastructure that enables Australian consumers, businesses and government agencies to make real-time, data-rich payments between accounts at participating financial institutions. It supports real-time clearing and settlement for simple or complex payment solutions and has the potential to deliver significant back-office efficiencies.
The NPP can simplify payments through its Addressing Service, called PayID . It can also support more information sent with payments, such as written text or links to externally hosted documents. An example of a service using these capabilities is Osko by BPAY.
The Platform has been designed to be extensible, meaning it will evolve to meet the future needs of Australian consumers and businesses.
The New Payments Platform provides innovators with capability building blocks that can be used in different ways to create new payments experiences and enable efficient, cost-effective back-end processing.
There is a broad spectrum of innovative possibilities that could be brought to life by the Platform – from supporting emergency payments, helping corporate treasurers unlock their working capital, embracing more efficient reconciliation, or enabling real-time payments overseas.
Many of these innovative possibilities could incorporate PayID – the Platform’s addressing service that enables payments to be directed to accounts using information that is easier to remember than a BSB and account number, such as a phone number, email address or Australian Business Number.
Outside retail, corporate and institutional banking, the industries and sectors that could benefit from the Platform’s capabilities include insurance, superannuation, ecommerce, payroll, the gig economy, securities and company corporate actions. But the NPP’s potential is not restricted to these sectors alone.
A great deal of innovation could occur ‘before’, ‘after’ or ‘around’ the real-time payment leg of a product or service. Examples of this include the real-time funding or defunding of digital payments wallets, short-term lending, the first or last domestic leg of an international remittance, or QR Code driven products.
Developers can learn and test the NPP’s capabilities via the API Framework and Sandbox.
We have a range of guides and short discussion papers that illustrate how the NPP can be brought to life.Resources
PayID is the name of the NPP’s addressing service. It’s a function of the Platform that allows users to link easy-to-remember pieces of information, such as their phone number or email address, to their account. Users can then provide their PayID, instead of their BSB and account number, to people or organisations they wish to receive payments from.
PayID does not replace a BSB and account numbers entirely. It just provides an alternative and simpler way to address payments for people or businesses who don’t want to share their BSB and account number. It’s about simplifying the payments process by using information that is easier to remember.
People and businesses can create, manage or move a PayID by contacting their participating financial institution.
To read more about PayID, visit www.payid.com.au
Organisations developing a service or product supported by the Platform, may wish to use the PayID functionality as part of their service offering. For more information they should email firstname.lastname@example.org
Businesses with a PayID may wish to tell their customers it’s available to make payments to by using one of our logos. Find out more here.
Osko by BPAY is the first overlay service developed for use on the NPP. Launched in February 2018, its first iteration enables real-time peer-to-peer payments via the user’s regular internet or mobile banking service. It also enables users to include up to 280 characters to describe their payments, including emojis!
Financial institutions participating in the NPP are required to have fraud and security controls in place to protect the integrity of the Platform and those who use it. At the same time, the NPP is certified to the highest data security standards and monitored 24-hours-a-day, seven-days-a-week.
NPP payments are typically made by logging into the secure internet site or mobile banking application of a participating financial institution and authorising a payment. If payers are sending a payment to another person’s PayID, they can check the name of the person associated with that PayID before hitting send on the payment.
While most financial institutions today use tools that can detect, stop and examine unusual or suspicious payments, consumers need to remain alert to scams where they could be tricked into handing over their online banking password or authorising a payment. The banking industry is a leading advocate for cybersecurity and scam awareness, educating the general public on what they should be wary of, which includes reminding customers that they should: