The Reserve Bank of Australia and its Payments System Board have rolled out a new payments infrastructure known as the New Payments Platform (NPP) that allows customers with accounts with different banks to make payments and transfer funds in real-time.
The new payment service, which can be availed round the clock, is currently available to customers of Commonwealth Bank, National Australia Bank and Westpac.
The facility will also be available for nearly 60 financial institutions, including ANZ, in the future.
Developed by Swift in collaboration between 13 members of Australia’s financial services industry, the platform provides an addressing service known as PayID, which allows users to enter only the recipients’ mobile phone number or email address to transfer the money to the intended recipients.
NPP Australia said that the new payment platform also offers data capability via ISO20022 in addition to real-time settlement through the Reserve Bank of Australia’s Fast Settlement Service.
The trial of the NPP commenced in November last year. During the trial, the payments platform supported funds transfers between employees of various banks, building societies and credit unions. Upon successful testing, the platform has been rolled out for public on 13 February.
NPP Australia CEO Adrian Lovney said that over time more payments products and services are likely to make use of the New Payments Platform’s PayID functionality.
“PayID will make payments simpler because it means you don’t have to remember, or share, your BSB and account details with others. Being able to see the name of the person you are paying before you confirm the payment provides more reassurance,” Lovney added.
Osko from the BPAY Group is the first product to be developed using the NPP’s capabilities. The app will be available through online or mobile banking applications without requiring downloading an app or visiting another website.
BPAY Group CEO John Banfield said: “Osko by BPAY is a big step forward for Australian payments. It will make payments faster, easier, and more convenient than ever before. With Osko, you’ll no longer have to dash to the ATM late at night to get money for the babysitter. You’ll be able to pay them on the spot in under a minute, in your secure banking environment, 24 hours a day, and seven days a week.”