The New Payments Platform is coming (NPP)
First published on October 27, 2017
The New Payments Platform (NPP) is a major industry initiative to develop new infrastructure for Australian payments. It will provide Australian consumers, businesses and government faster, simpler, smarter payments through a fast, versatile, data-rich payments system.
The NPP will make payments faster, simpler and smarter. There will be five main benefits to the NPP when it starts, with more benefits available as more services are added in future.
- Speed. It will allow you to make payments in real-time.
- 24/7 availability. Transfer money any time of day or night.
- Greater information. You will be able to send much more information with each payment, rather than be constrained to the current limit of 55 characters.
- Simpler. You will be able to use email addresses, mobile phone numbers or other common information to identify their accounts, rather than BSBs and Account Numbers.
- Certainty. When you transfer money using the NPP you will receive confirmation it’s going to the right place.
Once the first phase of the New Payments Platform is available you’ll see products and services of the New Payments Platform – like Osko and Pay ID. You will be able to create a PayID, allowing you to make and receive payments using mobile phone numbers or email addresses without any need to disclose your BSBs and account numbers. This simplified payment process links your mobile phone number and / or email address to your bank account making it quicker and easier to make and receive payments.
When will the NPP be available?
The industry has a comprehensive testing regime to complete before the NPP will be available to the public. We will be able to confirm this closer to the time.
When and how can I register for the NPP?
Not yet. We will tell you when you’re able to register, you will be able to register for a PayID directly through us as well as make NPP payments.
Which financial institutions are connecting to the NPP?
It’s up to each individual financial institution to put forward its plans, but the large majority of Australians will be able to make real-time payments using the NPP. The NPP is being developed by 13 leading Australian financial institutions, including Cuscal the Big 4 banks and the RBA, and many more financial institutions will connect to the NPP through them.
How is BPAY involved, and what is it building?
BPAY was awarded the contract to build the NPP’s first ‘overlay service’. Overlay services are built on top of the NPP infrastructure and will allow greater functionality. BPAY’s service is called Osko and will allow people to send payments directly from their bank accounts, 24/7 to friends, businesses and the government.
Osko by BPAY is the main way that everyday people will use the NPP in the short term, it ensures a consistent experience when making payments via the NPP.
What is a PayID?
A “PayID” is a smart address for payments. It links someone’s bank account to a recognisable and memorable piece of information the person uses in everyday life – such as their phone number or email address. A PayID can only be linked to one bank account at a time, but accounts can have more than one PayID. A PayID can be a phone number, email address, ABN or ‘organisation ID’ such as a company name.
What are the benefits of PayID?
There are a number of benefits to using PayID, including:
- PayID will make payments an intuitive experience in keeping with the way we live life today, and does it in a way that is safe and secure.
- Greater convenience as you can provide Payers with details which are easy to remember such as an email address or phone number.
- Greater peace of mind as you no longer have to provide your financial account information such as BSB and account number to Payers in order to receive payments. Services that use a PayID, may display a PayID name before you send a payment as an additional level of confirmation that you’re sending the money to the right person.
How secure will PayID be?
It’s in everyone’s interest that PayID is safe and secure which is why it is certified to the highest data security capabilities and monitored 24 hours a day, seven days a week.
What is Osko by BPAY?
Osko by BPAY, is the latest payments innovation from the BPAY Group and it will transform the way we pay each other.
Osko by BPAY is an innovative payment service, and because it is built on the New Payments Platform, it allows all Australians to make and receive faster, 24/7 payments via any participating Financial Institution. Rather than waiting hours or days for a payment from someone who owes you money, and who happens to use a different bank, money can now be moved in near real-time with funds available almost immediately. The service could be used when paying at a group dinner, socialising, or even paying a plumber on the spot. Osko by BPAY enables payments to one another more conveniently than ever before. The service uses the PayID which means you don’t need to disclose your BSB or account number when requesting payment.