It is now a biggest question now in Australia on how the New Payments Platform – its transformation has impact on regular chores of Australians and its businesses. As time and tide waits for none, the realty of exchange of money and transactions amongst the people has evolved the invention of this new system. The way people and businesses spend and receive money has changed rapidly. Australians are increasingly used to fast, online and mobile experiences and it’s important that the payments system supports this evolution. This New Payment Platform is going to be agile and enables customers of different banks to make and receive real-time payments, 24/7 without any hassle under the guidance of Reserve Bank of Australia.
Financial experts say that this New Payments Platform (NPP) has the prospective to do so much more than enable near real-time payments. The digitization of back offices of businesses enables rich data services for consumers, delivered digitally reaching the customers expectation.
The New Payments Platform evolved from the industry’s response to these objectives, and provides the infrastructure needed to support the digital economy of the future. The Reserve Bank of Australia’s Strategic Review of Innovation in the Payments System set four key challenges for the industry: Speed – making the funds availability nearly instant, 24/7 availability – no wait for bank hours and make payments any time, Data Enriched – send a complete remittance information along within the payment and Simple Addressing – making it more simple, now the new system called PayID enables consumers to more easily address payments to any recipient using an identifier like a phone number, email address, ABN or an organisational identifier.
This new platform is enabling a secure set of process amongst participating financial institutions enabling them to send payment messages in real-time, with real-time line by line settlement supported by the Reserve Bank of Australia and also enables faster or instant transaction. Adding a chance to share more data that can travel with these messages, like longer descriptions or attachments such as invoices or receipts, payments can be directed to accounts via an identifier called a PayID, which can be as simple as a mobile phone number or email address and innovative organisations can use the Platform’s features and reach to create and offer new and competitive payments products or services.
For any instance or transaction to be in place, one need not share their bank details or security information, just a PayID is enough or an ABN that you can securely link to your bank credit union or building society account.
The other fascinated thing is one need not do any changes to their existing accounts all they need is create a PayID and link it to the accounts and they can easily transact amongst the various accounts they have. This means that payments linked to your PayID will move to your new account automatically.
A transaction cost would be applied ofr wholesale units by NPP Australia that are participating in the financial institutions and expected to be in implementation from mid of 2018.
As a coin have two sides. It is expected to have frauds in terms of data security and we hope to see a standard and sophisticated system that ensures all Austrailians have hassle free transactions.
Subscribe to our mailing list and get interesting stuff and updates to your mail box.