The New Payments Platform (NPP) launched yesterday, going live across 60 financial institutions including the four major banks to provide a new lightning-fast payment system. NPP is set to revolutionise the way we make payments with instant bank transfers using a PayID only. That’s right, the days of double checking correct BSB and Account numbers are over.
The NPP and it’s initial overlay service called Osko (by Bpay), will allow financial institutions to provide better services to Australian consumers and businesses, which the Reserve Bank of Australia says includes:
- Make real-time payments with close to immediate funds availability to the recipient (no more waiting 3 days for funds to clear from a different bank).
- Make and receive payments on a 24/7 basis (no more waiting overnight if you make a transfer after 6pm).
- Have the capacity to send more complete remittance information with payments (no longer limited to 14 characters for payment reference, with the option to include invoices with transfers).
- Address payments in a relatively simple way (payments can be made via a PayID, no longer needing BSB and account numbers).
Where do I start?
To find out if your financial institution has jumped onboard the NPP, search here. Most major banks are already party of the NPP since its inception in 2012.
You will receive notification from your bank, building society or credit union, when you can log on to internet banking to create your PayID.
Your PayID can be something that’s easy for you to remember, like a mobile number, email address or nickname. If you have more than one account, you can register a different PayID for each account.
Once your PayID has been created, you can simply give this out when someone needs to transfer a payment to you, without having to give your BSB and account number. Likewise, if you wish to transfer a payment to someone else, simply ask for their PayID.
According to Business Insider Australia, when you enter a PayID, the name of the person who owns that PayID will be automatically shown. All you have to do is simply confirm it’s the right person as part of authorising the transaction. Once approved, your bank will securely communicate with theirs, sending the money into their account.
Click on the video below for a full explanation:
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Disclaimer: This post has been prepared for general information purposes only. It is not specific advice to any particular person. You should consult an authorised Align Financial adviser before making financial decisions. Align Financial | Financial Planner Northern Beaches | Servicing North Narrabeen, Narrabeen, Mona Vale, Elanora Heights, Newport, Avalon, Palm Beach | Enquire online with us.