New Payments Platform
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| Founded | 2013 |
|---|---|
| Headquarters | Australia |
| Website | www |
The New Payments Platform (NPP), operated by New Payments Platform Australia Ltd (NPPA)[1] is an industry-wide payments platform for Australia. It was first made accessible to the general public on 13 February 2018[2] with the launch of PayID, an addressing capability, and Osko,[3] the first NPP overlay service, operated by BPAY. As of November 2022, there are close to 13 million registered PayIDs.[4]
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[edit]
The 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[edit]
PayID 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[edit]
Osko 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 the spring of 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[edit]
PayID has been noted in Australia as a vehicle for online scammers on social media marketplaces. [15][16][17]
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.
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