New Payments Platform

New Payments Platform Australia

Type| Public (unlisted)

Traded as

| New Payments Platform Australia Limited (Template:ABN)
Industry| Payments
Founded| June 2013; 13 years ago (2013-06)
Headquarters| 255 George Street,

Sydney, New South Wales

Australia

Website| www.nppa.com.au

The New Payments Platform (NPP), owned and operated by New Payments Platform Australia Ltd (NPPA)[1] is a national industry-wide real-time payments platform for Australia. As of April 2025, there are over 25 million registered PayIDs.[2]

In 2021, NPP Australia became a wholly owned subsidiary of Australian Payments Plus (AP+) after the ACCC authorised the amalgamation with BPAY Group and eftpos.[3][4]

## Contents

* 1 History
* 2 Services
* 2.1 PayTo
* 2.2 PayID
* 2.3 Osko
* 3 NPP Australia
* 4 Participant Banks
* 5 Controversy
* 5.1 Online scams
* 6 References

## History

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 the Australian Payments Clearing Association.[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]

It took approximately 6 years to implement[8] and became accessible to the general public on 13 February 2018 [9] with the introduction of PayID, an addressing capability, and Osko,[10] the first NPP overlay service, operated by BPAY.

In September 2021, the Australian Competition & Consumer Commission (ACCC) authorised a proposed merger of the New Payments Platform of eftpos Payments Australia and BPAY.[11][12]

## Services

### PayTo

The Mandated Payment Service is now known as PayTo. It is a system for enabling "withdrawals" on the NPP whereby businesses to initiate real-time payments from a customers’ bank account. 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. . PayTo can also be used by third parties to conduct payments on behalf such as for corporate payroll and accounts payable.[13]

### PayID

PayID is NPP's addressing service to enable payments. Its PayTo facility allows for payments to be sent by a user to a PayID.[14] The following chart compares PayID mobile payments via NPP to electronic payments, or bank transfers.

Compare | PayID/PayTo | Bank transfer

|
|

Transfer Time | Less than 1 minute, normally [15] | Up to 3 working days
Activation | Opt-in, via your bank | Always
Payee ID | Phone number, email or ABN[16] | BSB and account number
Withdrawals | via PayTo | Possible (if they have your password)
Direct Debit | via PayTo, with payee authorisation | Possible, but requires payee to cancel
Availability | 24/7 | Banking hours only
Full Payee Name | Confirmed before approval | Not included
Transfer description | 280 characters (allows emojis) | 18 characters
Remitter name | Personal or business account name | 16 characters
Change accounts | Keep PayID or create new one | Same BSB and new account number
Switch banks | Keep PayID or create new one | New BSB and new account number
Multiple IDs | Use multiple emails | Never
Pay Overseas | In the near future | Current

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 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.[17]

## NPP Australia

NPP Australia is a non-profit public company established to oversee the operation of the NPP and is owned by 13 shareholders. It is governed by a board of 12 voting Directors, including 3 independent Directors, and the RBA.[18]

New Payments Platform Australia Limited Shareholders  NPP Australia

Australia and New Zealand Banking Corporation
Australian Settlements Limited
Bendigo and Adelaide Bank Limited
Citigroup Pty Ltd
Commonwealth Bank of Australia
Cuscal Limited
HSBC Bank Australia Limited
Indue Limited
ING Australia
Macquarie Bank Limited
National Australia Bank Limited
Westpac Banking Corporation
Reserve Bank of Australia

## Participant Banks

Financial institutions need to ensure that their NPP services can reliably handle the full range of payments. All NPP Participants must meet availability requirements of no more than two minutes outage per month.[19]

The below 14 banks directly participate in both clearing and settling NPP payments:

* ANZ ($1,000 to $25,000 limit depending on account type, ANZ Shield, payment details with 280 characters of description)
* Bendigo and Adelaide Bank
* CBA (up to $10,000 for personal accounts, upto $150million for business accounts, two-factor authentication, ability to block/unblock PayID)
* Cuscal
* HSBC
* Indue
* ING (default limit of $20,000, two-factor authentication, ability to manage PayID through the ING app
* Macquarie Bank
* NAB (default limit of $20,000, SMS security codes, PayID management through online banking).[20]
* WBC (limit of AUD 250 per transaction or $1,000 daily, Westpac Protect Security Code, Osko services from BPAY)

## Controversy

### Online scams

PayID has been noted in Australia as a vehicle for online scammers on social media marketplaces.[21][22][23]

## References

1. ↑ Nelson, Jake (2021-08-06). "ACCC Seeks Input On Eftpos Mega-Merger". CHANNELNEWS. https://www.channelnews.com.au/accc-seeks-input-on-eftpos-mega-merger/.
2. ↑ "The NPP October 2022 Roadmap has been published". 4 November 2022. https://nppa.com.au/npp-roadmap-provides-update-on-the-platforms-uptake-and-capability-development.
3. ↑ "ACCC authorises payment systems merger after undertaking". Australian Competition and Consumer Commission. 9 September 2021. https://www.accc.gov.au/media-release/accc-authorises-payment-systems-merger-after-undertaking.
4. ↑ "Memorandum of Understanding: Cooperation arrangements between Australian Payments Plus Limited, NPP Australia Limited and the Reserve Bank of Australia (2024–2027)". Reserve Bank of Australia. 2024. https://www.rba.gov.au/payments-and-infrastructure/payments-system-regulation/mou/app-npp-and-rba/.
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". Digital Finance Analytics. 11 December 2019. https://digitalfinanceanalytics.com/blog/tag/npp/.
8. ↑ ﻿World Bank Fast Payments Toolkit Case Study: Australia﻿ (Report). September 2021. https://fastpayments.worldbank.org/sites/default/files/2021-10/World_Bank_FPS_Australia_NPP_Case_Study.pdf.
9. ↑ Lekakis, George (7 April 2021). "BPAY Group claims strategy shift at NPPA helped trigger Osko write-down". https://www.bankingday.com/bpay-group-claims-nppa-strategy-shift-helped-trigger-osko-write-down.
10. ↑ "Osko by BPAY". https://www.osko.com.au/.
11. ↑ Proposed amalgamation of BPAY, eftpos and NPPA Australian Competition & Consumer Commission 9 September 2021
12. ↑ Barbaschow, Asha (2021-09-08). "ACCC gives green light to Eftpos' merger with BPay and NPPA". ZDNET (Red Ventures). https://www.zdnet.com/finance/accc-gives-green-light-to-eftpos-merger-with-bpay-and-nppa/.
13. ↑ "NPP Mandated Payments Service - enabling third party payment initiation". 7 May 2020. https://nppa.com.au/enabling-third-party-payment-initiation-on-the-npp-an-update-on-the-mandated-payments-service/.
14. ↑ "Commonwealth Bank Modernises Payments with PayTo". Fintech Finance. 2022-09-16. https://ffnews.com/newsarticle/commonwealth-bank-modernises-payments-with-payto/.
15. ↑ The New Payments Platform and Fast Settlement Service Reserve Bank of Australia 20 September 2018
16. ↑ Pay ID
17. ↑ Lekakis, George (7 April 2021). "BPAY Group claims strategy shift at NPPA helped trigger Osko write-down". https://www.bankingday.com/bpay-group-claims-nppa-strategy-shift-helped-trigger-osko-write-down.
18. ↑ ﻿Inquiry into Future Directions for the Consumer Data Right Submission﻿ (Report). NPP AUSTRALIA. 15 May 2020. https://treasury.gov.au/sites/default/files/2020-07/new-payments-platform.pdf.
19. ↑ ﻿Supporting the Transition from BECS to Modern Payment Systems﻿ (Report). 12 December 2023. https://www.rba.gov.au/speeches/2023/sp-gov-2023-12-12.html#key-issues-for-2024.
20. ↑ "The Best Banks that Support PayID". https://payid-pokies.net/.
21. ↑ "NAB warns of new PayID scam targeting Aussies selling items online" (in en-AU). https://news.nab.com.au/news/payid-scam/.
22. ↑ "Amber tried to sell her bed online. Then she lost hundreds of dollars" (in en). 2023-02-18. https://7news.com.au/news/cyber-security/a-payid-scam-is-swindling-online-sellers-out-of-thousands-of-dollars-amber-fell-for-it--c-9750083.
23. ↑ "Tasmanians being urged to be alert to PayID scams" (in en). https://www.premier.tas.gov.au/site_resources_2015/additional_releases/tasmanians-being-urged-to-be-alert-to-payid-scams.

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