New Payments Platform

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New Payments Platform Australia
Company typePublic (unlisted)
New Payments Platform Australia Limited (ABN 68 601 428 737)
IndustryPayments
FoundedJune 2013; 12 years ago (2013-06)
Headquarters255 George Street,
Sydney, New South Wales
,
Australia
Websitewww.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]

History

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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

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PayTo

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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

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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

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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

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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

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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

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Online scams

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

References

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  1. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
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  4. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  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. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  8. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
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  10. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  11. ^ Proposed amalgamation of BPAY, eftpos and NPPA Australian Competition & Consumer Commission 9 September 2021
  12. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  13. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  14. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  15. ^ The New Payments Platform and Fast Settlement Service Reserve Bank of Australia 20 September 2018
  16. ^ Pay ID
  17. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  18. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  19. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  20. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  21. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
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  23. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
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