New Payments Platform

Short description: Industry-wide payments platform for Australia

New Payments Platform Australia

Founded| 2013
Headquarters| Australia
Website| www.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]

## Contents

* 1 Mandated Payment Service and PayTo
* 2 PayID and PayTo routing
* 3 Osko
* 4 Online Scams
* 5 References

## 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.

Compare | PayID/PayTo | Bank Transfer

|
|

Transfer Time | Less than 1 minute, normally [11] | Up to 3 Working Days
Activation | Opt-In, via your bank | Always
Payee ID | Phone number, email or ABNs[12] | BSB & 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 & new account number
Switch banks | Keep PayID or create new one | New BSB & new account number
Multiple ID's | 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 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 (2021-08-06). "ACCC Seeks Input On Eftpos Mega-Merger". CHANNELNEWS. https://www.channelnews.com.au/accc-seeks-input-on-eftpos-mega-merger/.
2. ↑ 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.
3. ↑ "Osko by BPAY". https://www.osko.com.au/.
4. ↑ "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.
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. ↑ 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/.
9. ↑ "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/.
10. ↑ "Commonwealth Bank Modernises Payments with PayTo". Fintech Finance. 2022-09-16. https://ffnews.com/newsarticle/commonwealth-bank-modernises-payments-with-payto/.
11. ↑ https://www.rba.gov.au/publications/bulletin/2018/sep/the-new-payments-platform-and-fast-settlement-service/ [|permanent dead link|dead link}}]
12. ↑ Pay ID
13. ↑ 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.
14. ↑ "NAB warns of new PayID scam targeting Aussies selling items online" (in en-AU). https://news.nab.com.au/news/payid-scam/.
15. ↑ "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.
16. ↑ "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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