New payments platform to deliver instant bank transfers

pay idBANKING customers will soon be able to farewell painful payment delays with a new system that enables instant bank transactions within seconds.

Getting a customer’s payment details including a BSB and account number will no longer be required and instead a person’s phone number or email address will be enough to transfer cash.

And for anyone making an excuse as to why a payment hasn’t happened, or declaring money is on it’s way, you’ll simply be caught lying.

The New Payments Platform is due to arrive in February after four years in the making and it will drastically speed up transactions.

It will allow customers to send and receive money 24 hours, 7 days a week and 365 days a year regardless of who customers do their banking with.

NPP chief executive officer Adrian Lovney said the transition to the faster payments platform is long overdue in Australia.

“Once the system goes live one of the first things people will see is they will be offered the opportunity to create a PayID,’’ he said.

“Here people can use their mobile number, home phone number or email address or if they are business they could use their ABN or ACN.

”The Pay ID is a critical piece of information — it allows customers to link a phone number, email address or ABN to their bank, credit union or building society account — and this PayID can be shared, replacing BSB and account number details.

Customers will be able to register their PayID through their bank and when using it to transfer money, if they enter a person’s mobile phone number or email linked to their account their name will pop up.

But you don’t have to use a PayID, you can still use a BSB and account number to make transactions.

While the banks have been beavering away in the background to test run the NPP, big bank ANZ has found some transactions have been completed in as little as 10 seconds.

They have even test driven the platform to load 50 separate payments a second, which they forecast to be its traffic load once the NPP begins.

Strategic relations firm RFi’s Australian research director Alex Boorman said the payment technology will bring Australians into line with other markets worldwide.

“You can imagine scenarios where you are buying an item, for instance cash on pick-up maybe on Gumtree and upon going to pick up the item you could make a payment and the other person would see the funds,’’ he said.

He also said banking users will have the 18-characters allowed for a payment description to be increased to 280 characters.

The first service to allow these instant payments to be done will be “Osko,” owned by BPay and will allow customers to send and receive payments through their PayID.

As for security, Mr Lovney said the new payments platform is “incredibly secure so that it can’t be attacked or hacked.”

“If I know your PayID I can’t get money out of your bank account, you still have to authorise a payment and push it to me,’’ he said.