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The New Payments Platform (NPP) is a new payments infrastructure that provides a number of benefits to Australians, including real-time funds transfers. Australians consumers, businesses and government departments all stand to benefit from the NPP.
This guide will explain exactly what the NPP is, what its features are, how to find out if your bank has it and how to use it.
The NPP is a completely new payments infrastructure for Australia and launched on 13 February 2018. It provides fast, flexible and data-rich payments to individuals and organisations. The platform was developed by NPP Australia Ltd and 13 financial institutions.
Under the NPP, households, businesses and government agencies can send and receive faster, data-rich payments.
The NPP makes instant bank transfers a reality for Australian consumers, providing convenience and freedom for a wide range of personal transactions. When a friend promises to transfer funds to your account to cover their share of a restaurant bill, that money will appear in your account and be ready for use almost instantaneously. If you want to send money to a relative interstate to help them pay an urgent bill, you can get them the funds they need straight away.
It’ll also be much easier to send payments. Instead of exchanging hard-to-remember BSBs and account numbers, you can identify a transaction account by a simpler payment address, such as the account holder’s email address or phone number.
BPay's Osko platform is a great example of how the NPP could benefit you. The service allows you to pay bills in real-time, send a 280-character description with each transfer and identify payees by their email address or phone number (known as their PayID). Several banks have already launched PayID using Osko, with more than 60 financial institutions rolling out the service in the coming months.
Businesses can also enjoy a number of important benefits with the NPP. For starters, you can pay your contractors and suppliers quicker, which will help you get things done faster. This not only means increased efficiency but allows you to manage your cash flow more effectively.
The NPP also simplifies complex payments, allowing you to quickly and easily transfer funds to many bank accounts. Instead of relying on BSBs and account numbers to identify transaction accounts, you can use an ABN, email address or phone number to identify an account. This is known as your PayID. You can even include more information than you previously could under the current character limit, with the ability to add more text or even link to external documents or add emoticons.
Finally, the NPP also allows the addition of overlay services, which can tap into the NPP infrastructure to deliver a wide range of benefits in much the same way that third-party apps can take advantage of the capabilities of your smartphone.
Overlay services could be used to simplify and speed up a range of common transactions, such as buying a car or house. With the ability to send more information about a transaction when you transfer the funds to make a purchase, paperwork (ie, the transfer of a car registration) could be lodged with the relevant authority much more quickly.
The RBA said the banks' slow rollout of real-time payments is disappointing and has delayed the NPP.
Read more…In a typical week, 1.9 million Osko payments are being processed.
Read more…Newly launched payments app lets you pay, request and split money instantly, for free.
Read more…Thirteen financial institutions have worked together to develop the NPP, including:
Over 60 financial institutions have partnered with the NPP to offer real-time payments using PayID and Osko, so your bank could offer the service over the coming weeks and months. Check our full list of banks that have launched PayID here to see if your bank is on the list.
If your bank has launched PayID using Osko, here's what you need to do:
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Are there any limits – min/max amount?
Hi Carla,
Thank you for getting in touch with finder.
The minimum and maximum amount will depend on your chosen bank. For example, payments made by CommBank personal customers using a PayID will be limited to a maximum $1,000.
I hope this helps.
Please feel free to reach out to us if you have any other enquiries.
Thank you and have a wonderful day!
Cheers,
Jeni