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The New Payments Platform (NPP), operated by New Payments Platform Australia Ltd (NPPA)[1] is an industry-wide payments platform for Australia. It became accessible to the general public on 13 February 2018 [2] with the introduction of PayID, an addressing capability, and Osko,[3] the first NPP overlay service, operated by BPAY. As of November 2022, there are nearly 13 million registered PayIDs.[4]
 | |
| Founded | 2013 |
|---|---|
| Headquarters | Australia |
| Website | www |
The new instant payment platform for real-time low-value payments was in response to the Reserve Bank of Australia's Payment System Board’s Conclusions to the Strategic Review of the Innovation in Payments System publication.[5] The NPP was announced in July 2013 by the Australian Payments Clearing Association.[6] In December 2014, the Program proceeded to the third phase: "design, build and test." In 2015 a contract was signed with SWIFT to design, build and operate the platform.[7]
In September 2021, the Australian Competition & Consumer Commission (ACCC) authorised a proposed merger of the New Payments Platform of eftpos Payments Australia and BPAY.[8][9]
Mandated Payment Service and PayTo
editThe Mandated Payment Service is now known as PayTo. It is a system for enabling "withdrawals" on the NPP. The NPP does not inherently support "withdrawals", so the service provides an overlay allowing the "withdrawing" party to create a payment order and authorisation request. [10]
PayID and PayTo routing
editPayID is NPP's addressing service to enable payments. Its PayTo facility allows for payments to be sent by a user to a PayID.[11] The following chart compares PayID mobile payments via NPP to electronic payments, or bank transfers.
| Compare | PayID/PayTo | Bank transfer |
|---|---|---|
| Transfer Time | Less than 1 minute, normally [12] | Up to 3 working days |
| Activation | Opt-in, via your bank | Always |
| Payee ID | Phone number, email or ABN[13] | BSB and account number |
| Withdrawals | via PayTo | Possible (if they have your password) |
| Direct Debit | via PayTo, with payee authorisation | Possible, but requires payee to cancel |
| Availability | 24/7 | Banking hours only |
| Full Payee Name | Confirmed before approval | Not included |
| Transfer description | 280 characters (allows emojis) | 18 characters |
| Remitter name | Personal or business account name | 16 characters |
| Change accounts | Keep PayID or create new one | Same BSB and new account number |
| Switch banks | Keep PayID or create new one | New BSB and new account number |
| Multiple IDs | Use multiple emails | Never |
| Pay Overseas | In the near future | Current |
PayID will coexist with the BSB and account number addressing scheme.
Osko
editOsko is owned and operated by BPAY, and operates on the NPP as an overlay service. It uses PayID as a reference for payments. Payments are instant to accounts that have been transferred to previously.
In 2021, BPAY attributed a change in NPPA strategy (particularly the announcement of MPS, the Mandated Payment Service), as the cause of write-down in the value of their Osko business.[14]
Online scams
editPayID has been noted in Australia as a vehicle for online scammers on social media marketplaces. [15][16][17]
Top banks that support PayID
editBanks that accept PayID include Commonwealth Bank (up to $10,000 for personal accounts, two-factor authentication, ability to block/unblock PayID), Westpac (limit of AUD 250 per transaction or $1,000 daily, Westpac Protect Security Code, Osko services from BPAY), ING Bank (default limit of $20,000, two-factor authentication, ability to manage PayID through the ING app), ANZ Bank ($1,000 to $25,000 limit depending on account type, ANZ Shield, payment details with 280 characters of description), and NAB (default limit of $20,000, SMS security codes, PayID management through online banking). [18]
References
edit- ^ Nelson, Jake (6 August 2021). "ACCC Seeks Input On Eftpos Mega-Merger". CHANNELNEWS. Retrieved 18 September 2022.
- ^ Lekakis, George (7 April 2021). "BPAY Group claims strategy shift at NPPA helped trigger Osko write-down". www.bankingday.com. Retrieved 18 September 2022.
- ^ "Osko by BPAY". www.osko.com.au. Retrieved 3 November 2017.
- ^ "The NPP October 2022 Roadmap has been published". nppa.com.au. 4 November 2022. Retrieved 5 May 2023.
- ^ Strategic Review of Innovation in the Payments System: Conclusions Reserve Bank of Australia June 2012
- ^ Industry wide program to develop the "Industry-wide program to develop the New Payments Platform gets underway" Australian Payments Network. Retrieved 8 July 2013.
- ^ "RBA Advocates A Strong Digital Identity System". www.digitalfinanceanalytics.com. Digital Finance Analytics. 11 December 2019. Retrieved 20 September 2022.
- ^ Proposed amalgamation of BPAY, eftpos and NPPA Australian Competition & Consumer Commission 9 September 2021
- ^ Barbaschow, Asha (8 September 2021). "ACCC gives green light to Eftpos' merger with BPay and NPPA". ZDNET. Red Ventures. Retrieved 18 September 2022.
- ^ "NPP Mandated Payments Service - enabling third party payment initiation". 7 May 2020.
- ^ "Commonwealth Bank Modernises Payments with PayTo". Fintech Finance. 16 September 2022. Retrieved 20 September 2022.
- ^ The New Payments Platform and Fast Settlement Service Reserve Bank of Australia 20 September 2018
- ^ Pay ID
- ^ Lekakis, George (7 April 2021). "BPAY Group claims strategy shift at NPPA helped trigger Osko write-down". www.bankingday.com. Retrieved 18 September 2022.
- ^ "NAB warns of new PayID scam targeting Aussies selling items online". National Australia Bank. Retrieved 11 March 2023.
- ^ "Amber tried to sell her bed online. Then she lost hundreds of dollars". Seven News. 18 February 2023. Retrieved 11 March 2023.
- ^ "Tasmanians being urged to be alert to PayID scams". Premier of Tasmania. Retrieved 11 March 2023.
- ^ "The Best Banks that Support PayID". Retrieved 29 July 2024.
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