PayID: What it is and how can I set one up?

How to set up your PayID

1. Log onto your mobile banking app or internet banking platform
2. Look for the 'Setup PayID' option in your account settings - this might be in a notification or message.
3. Select your choice of PayID (options usually include either your mobile number or email address).
4. Done - your PayID will now be locked to this account.

What is PayID?

PayID is a feature linked to your existing bank account that makes sending and receiving money that little bit easier. Instead of scrambling for your bank account and BSB number, you can give your friends and family an easy to remember ID like your mobile number or email address and watch the transaction happen in real time.

Register your unique PayID with your bank who will securely link it to your bank account. Once it's been set up, you can start giving it to friends and family when they need to transfer you money instead of giving them your BSB and account number. You can also use it when you need to pay someone, by asking for their PayID.

How does PayID work?

Most banks, building societies and credit unions offer PayID, and setting one up is optional. Simply follow the steps within your mobile banking app or via internet banking to create your unique PayID (as outlined above). Your PayID will generally be your mobile number, but some institutions will allow you to use your email, ABN, ACN or landline phone number. Your banking institution will then link the PayID to your bank account.

To receive payments

After successfully registering your PayID, share it with your family and friends so they can pay you with their mobile banking app or via internet banking.

To send payments

Your friends and family will need to provide you with their PayID. Then you can use your mobile banking app or internet banking to send the payment to that PayID, instead of entering your recipient's BSB and account number. All you need to do is select the 'PayID' option when choosing how to pay.

"If you send someone money using PayID, after you enter their PayID, for example their phone number, it will come up with their full name and account details to confirm who you're sending money to. This is great as you can be sure you're sending money to the correct person before hitting send. This isn't always the case when using a BSB or account number. "

Alison Banney

Editorial Manager, Money

What are the benefits of PayID?

• Fast. Watch your payments happen in real time.
• Easy. No more searching for your account and BSB number.
• Fewer mistakes. Use an easy to remember number to get paid.
• Mobile. Built into most banking apps and online banking.
• Secure. PayID shows you the name linked to the PayID before you pay, which helps you check you’re paying the right person.
• Simple registration. A few clicks and you’re ready to go.
• Longer descriptions. You’ll be able to send a 280-character description with your transfer, and you can even use emoticons.

See the full list of banking institutions offering PayID

Examples of using PayID

If you’re running your own business and are sending invoices out, instead of putting your account and BSB number on the bottom you can now just add your registered PayID. When used together with a product like BPay’s Osko (a system which allows payments to be made between financial institutions in under a minute), then you can watch the payment happen in real-time.

Additionally, if you’re doing a job and your customer doesn’t have cash on them, then PayID and Osko will allow them to make the payment online, safely and in real-time, so you can make sure that the money comes through to your business account before heading home.

When your customers make a payment via your PayID, the name of your business will appear on their screens so they can be sure they’re transferring money to the correct business. Check with your bank how to register a PayID for your business account.

Tips for setting up & choosing your PayID

Your PayID will typically be your phone number (landline or mobile), but some institutions will allow you to use other identifiers such as your email, Australian Business Number (ABN), an Australian Company Number (ACN), an Australian Registered Body Number (ARBN), and an Australian Registered Scheme Number (ARSN). It’s not just a random number that you think up, but a number which already belongs to you. However, you'll need to prove that the PayID you chose belongs to you, so you won't be able to use a phone number or email address that belongs to someone else.

Frequently asked questions about PayID

• How can I be sure I’m sending money to the right person?

  When you enter a PayID, the name of the person who owns that PayID will automatically appear. All you have to do is simply confirm it's the right person and make the transaction.

• Can I use my PayID across multiple bank accounts?

  No, your PayID can only be linked to one bank account at a time. This means that you’ll need to create separate PayIDs for each bank account you have.

• How many PayIDs can I create?

  You can create as many PayIDs as you like, as long as you can prove that you are the owner of the information.

• But wait, can’t someone else just set up a PayID using my information?

  Registering a PayID with your bank, credit union or building society requires a series of identification and verification steps to prove you are the owner of the information you wish to use for the PayID, as well as details of the bank account you will be linking to the PayID. Unless someone has all this information, it will be hard for them to create a PayID using your details. If you think fraud has been committed on your account, contact your banking institution immediately.

• Is PayID mandatory?

  PayID isn’t compulsory. You may be asked if you’d like to create a PayID by your banking institution, but they cannot create one in your name without your full consent. Don't worry, bank account and BSB number aren't going anywhere. PayID is just an easier way for you to access your bank account.

• Is PayID safe to use?

  PayID shows you the name linked to a PayID before you hit send, which helps you avoid mistaken payments. But it can't stop you paying a scammer, and payments usually arrive within seconds. Scamwatch warns that being asked to set up a new PayID to pay someone, or to be paid, is a clear sign you should be suspicious. PayID will also never contact you directly or ask you to "upgrade your account". Only pay people and businesses you know and trust, and check the name shown matches who you expect.

• Can I use my PayID to make overseas payments?

  No. Your PayID can only be used for payments within Australia.

• What does real-time payment actually mean?

  When transferring money via BPay’s Osko using someone’s PayID, the money will appear in their account almost instantly. This will vary from bank to bank, but it’s estimated that the majority of payments will take less than 60 seconds to process.

Written by

Alison Banney

Editorial Manager, Money

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Alison is an editor at Finder and a personal finance journalist with over 10 years of experience, having contributed to major financial institutions and publications such as Westpac, Money Magazine, and Yahoo Finance. She is frequently quoted in media outlets like SmartCompany and SBS, offering expert insights on superannuation and money management. Alison holds a Bachelor of Communications in Public Relations and Journalism from the University of Newcastle, and has earned three ASIC RG146 certifications in superannuation, securities and managed investments and general financial advice, ensuring her expertise is fully aligned with ASIC standards. See full bio

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