New Payments Platform Australia
Founded2013
HeadquartersAustralia
Websitewww.nppa.com.au

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 APCA.[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 and Consumer Commission (ACCC) authorised a proposed merger of the New Payments Platform with eftpos Payments Australia Ltd and BPAY Pty Ltd.[8]

Mandated Payment Service and PayTo

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. [9]

PayID and PayTo routing

PayID is NPP's addressing service to enable payments. Its PayTo facility allows for payments to be sent by a user to a PayID.[10] The following chart compares PayID mobile payments via NPP to electronic payments, or bank transfers.

ComparePayID/PayToBank Transfer
Transfer TimeLess than 1 minute, normally [11]Up to 3 Working Days
ActivationOpt-In, via your bankAlways
Payee IDPhone number, email or ABNs[12]BSB & Account Number
Withdrawalsvia PayToPossible (if they have your password)
Direct Debitvia PayTo, with payee authorisationPossible, but requires payee to cancel
Availability24/7Banking hours only
Full Payee NameConfirmed before approvalNot included
Transfer description280 characters (allows emojis)18 characters
Remitter namePersonal or business account name16 characters
Change accountsKeep PayID or create new oneSame BSB & new account number
Switch banksKeep PayID or create new oneNew BSB & new account number
Multiple ID'sUse multiple emailsNever
Pay OverseasIn the near futureCurrent

PayID will coexist with the BSB and account number addressing scheme.

Osko

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.[13]

Online Scams


PayID has been noted in Australia as a vehicle for online scammers on social media marketplaces. [14][15][16]

References

  1. ↑ Nelson, Jake (6 August 2021). "ACCC Seeks Input On Eftpos Mega-Merger". CHANNELNEWS. Retrieved 18 September 2022.
  2. ↑ Lekakis, George (7 April 2021). "BPAY Group claims strategy shift at NPPA helped trigger Osko write-down". www.bankingday.com. Retrieved 18 September 2022.
  3. ↑ "Osko by BPAY". www.osko.com.au. Retrieved 3 November 2017.
  4. ↑ "The NPP October 2022 Roadmap has been published". nppa.com.au. 4 November 2022. Retrieved 5 May 2023.
  5. ↑ "Strategic Review of Innovation in the Payments System: Conclusions" Reserve Bank of Australia; June 2012.
  6. ↑ Industry wide program to develop the "Industry-wide program to develop the New Payments Platform gets underway" Australian Payments Network. Retrieved 8 July 2013.
  7. ↑ "RBA Advocates A Strong Digital Identity System". www.digitalfinanceanalytics.com. Digital Finance Analytics. 11 December 2019. Retrieved 20 September 2022.
  8. ↑ Barbaschow, Asha (8 September 2021). "ACCC gives green light to Eftpos' merger with BPay and NPPA". ZDNET. Red Ventures. Retrieved 18 September 2022.
  9. ↑ "NPP Mandated Payments Service - enabling third party payment initiation". 7 May 2020.
  10. ↑ "Commonwealth Bank Modernises Payments with PayTo". Fintech Finance. 16 September 2022. Retrieved 20 September 2022.
  11. ↑ https://www.rba.gov.au/publications/bulletin/2018/sep/the-new-payments-platform-and-fast-settlement-service/
  12. ↑ Pay ID
  13. ↑ Lekakis, George (7 April 2021). "BPAY Group claims strategy shift at NPPA helped trigger Osko write-down". www.bankingday.com. Retrieved 18 September 2022.
  14. ↑ "NAB warns of new PayID scam targeting Aussies selling items online". NAB News. Retrieved 11 March 2023.
  15. ↑ "Amber tried to sell her bed online. Then she lost hundreds of dollars". 7NEWS. 18 February 2023. Retrieved 11 March 2023.
  16. ↑ "Tasmanians being urged to be alert to PayID scams". Premier of Tasmania. Retrieved 11 March 2023.


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