New Payments Platform

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.

What is the NPP?

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.

What does the NPP allow me to do?

Under the NPP, households, businesses and government agencies can send and receive faster, data-rich payments.

• Faster payments. You can send near-instant money transfers from one bank account to another, with real-time clearing and settlement available 24/7. This means that you will be able to send and receive payment to banks other than your own outside of banking hours without any delay.
• Data-rich payments. This means you can attach longer descriptions to your payments. Instead of using all sorts of acronyms and abbreviations to squeeze a long description into the available character limit, you can clearly detail what a payment is for.
• PayID. You also have the option to register for a PayID, which can be your phone number, email address or ABN, that you can use instead of your BSB and account number. This service is offered by Osko and is an overlay service on the New Payments Platform. You can read this guide to find out more information on PayIDs or contact your institution to find out if PayID is available.

How does it benefit consumers?

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.

How does it benefit businesses?

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 latest on the New Payments Platform

Banks may be forced to introduce real-time payments by end of 2019

The RBA said the banks' slow rollout of real-time payments is disappointing and has delayed the NPP. Read more…

BPAY’s real-time payment data shows we love fast transfers after 5pm

In a typical week, 1.9 million Osko payments are being processed. Read more…

Beem It: Hands-on review of the new instant payment app

Newly launched payments app lets you pay, request and split money instantly, for free. Read more…

Is my bank part of the NPP?

Thirteen financial institutions have worked together to develop the NPP, including:

• Australia and New Zealand Banking Group (ANZ)
• Australian Settlements Limited (ASL)
• Bendigo and Adelaide Bank
• Citigroup
• Commonwealth Bank of Australia
• Cuscal
• HSBC Bank Australia
• Indue
• ING Direct
• Macquarie Bank
• National Australia Bank (NAB)
• Reserve Bank of Australia (RBA)
• Westpac Banking Corporation

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.

How do I use the New Payments Platform?

If your bank has launched PayID using Osko, here's what you need to do:

1. Update your details. Make sure your personal details and contact details are all up to date with your bank
2. Set up your PayID. When invited to do so by your bank, set up your PayID through your Internet or mobile banking. Make sure you select something easy to remember and unique to you, such as your mobile phone number.
3. Start using PayID. When your bank launched the service, you can start to share your PayID with people to receive payments instantly.

Frequently asked questions

• Will the NPP cost me anything?

  The pricing of the NPP is at the discretion of your financial institution. Once the service has launched, contact your bank to find out whether it comes with any additional costs attached.

• Is the NPP safe?

  Yes. Your funds are protected by your bank’s fraud detection mechanisms and processes.

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

  The NPP has a payee-validation function, allowing you to see the information of the person or business you’re sending money to before completing your transaction.

• Is there a limit to sending money using a PayID?

  Most banks have set a limit as to how much you can transfer using a PayID. This is for security reasons. The payment limits range from$2,000 to $20,000 per day.

• Can I use my PayID to make overseas payments?

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

• Can I link my PayID to multiple accounts?

  No. A PayID can only be linked to one bank account at a time.

Tim Falk

Tim Falk is a writer for Finder, writing across a diverse range of topics. Over the course of his 15-year writing career, Tim has reported on everything from travel and personal finance to pets and TV soap operas. When he’s not staring at his computer, you can usually find him exploring the great outdoors.