New platform allows Australians to make instant electronic payments 24/7

New platform allows Australians to make instant electronic payments 24/7

The RBA states sixty banks, credit unions and building societies will commence their rollout from today, expanding into the coming months.

After months of speculation and in-house testing the New Payments Platform (NPP) has officially launched today, bringing with it a host of new capabilities which could transform the way Australians do their banking. In others, you may be required to choose an Osko payment first.

Banks will be contacting people to let them know the service is available and how to use it.

Services that use the Platform's capabilities will be rolled out soon from about 60 banks, building societies and credit unions across the country, giving consumers and businesses the ability to transfer money instantly between accounts at different financial institutions at any time of day, any day of the year.

Following an RBA review in 2012, the NPP was established a year later, and reportedly involves an initial group of thirteen shareholders including; ANZ, nab, Macquarie Bank, Westpac, Commonwealth Bank, ING Direct, HSBC Australia, Citigroup, Bendigo and Adelaide Bank.

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Three Australian banks have gone live with a real-time payments platform that will allow their customers to transfer funds instantly via PayID, a system that uses mobile phone numbers to confirm identities.

Another benefit of NPP is that customers can include additional information with their payments like additional invoices and receipts. According to NPP Australia, the platform itself has been live since November in order for employees at a number of different institutions to test its functionality. "Other financial institutions will be able to connect to the NPP directly or via an existing participant that offers connection services to smaller financial institutions", Morrison said.

The platform allows services to run on top of the NPP - like Bpay's Osko, which is the first so-called overlay service to arrive on the platform. The person-to-person service, similar to Zelle in the US, will be available through online or mobile banking applications.

"We will be announcing how we will roll out real-time payments to all our customers across Australia in the coming weeks", a spokesperson said. With Osko, you'll no longer have to dash to the ATM late at night to get money for the babysitter. And if you need to pay someone else, simply ask them for their PayID.

The NPP works like a "secure set of rails" between banks so they can send payment messages in real time to each other via the Reserve Bank.

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