Frequently Asked Questions
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 hour;
- Data Enriched – the ability to send more complete remittance information with payments; and
- 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.
The Platform is like a secure set of rails between participating financial institutions so they can send payment messages in real-time, with real-time line by line settlement supported by the Reserve Bank of Australia. This set of rails enables funds to be transferred between accounts instantly. In addition:
- More data can travel with these messages, like longer descriptions or attachments such as invoices or receipts.
- Payments can be directed to accounts via an identifier called a PayID, which can be something easy to remember like a mobile phone number or email address. This means BSBs and Account Numbers don’t always have to be used.
- Innovative organisations can use the Platform’s features and reach to create and offer new and competitive payments products or services. The first product launched from the Platform will be Osko by BPAY.
The way people and businesses spend and receive money has changed rapidly. Australians are increasingly used to fast, online and mobile experiences, and it’s important that the payments system supports this evolution. The Reserve Bank of Australia’s Strategic Review of Innovation in the Payments System set four key challenges for the industry: faster payments, 24/7 payments, data-rich payments and simpler payments addressing. The New Payments Platform evolved from the industry’s response to these objectives, and provides the infrastructure needed to support the digital economy of the future.
An overlay service is a product or service that leverages the functionality of the New Payments Platform to provide tailored payment experiences between the customers of Participants. They could be offered either by connected Participants or via arrangements with other organisations to enable access to the New Payments Platform.
We have recently published an API framework for the NPP. Version 1 of the framework focuses on PayID lookups and payment initiation messages. You can read more on the framework here. In October 2018 we announced the launch of a sandbox for testing APIs. The testing environment will enable third parties to gain a better understanding of the Platform’s benefits and capabilities.