New innovations rolled out from NPP
The first consumer-to-business payment service developed by fintech Azupay has finally gone live on the New Payments Platform and could potentially disrupt global card schemes.
Azupay’s service was first signaled by the NPP in October.
Azupay is among the early group of fintechs to connect to the NPP via a payment aggregator – in this case through payments solutions provider Cuscal.
A number of fintechs have rolled out innovations on the platform including Assembly Payments and Monoova.
“Any initiative that harnesses the power of the NPP is interesting – and some might argue, overdue,” RFi Group managing director of Consulting Alex Boorman said.
For Boorman, the key for the business will be around establishing and growing usage.
“As always for a payment method to be successful, in needs to demonstrate a strong value proposition for both consumers and merchants.”
Indeed, the New South Wales Government has already nabbed Azupay’s service for its Liquor and Gaming portal and it is expected that the fintech’s payment function will be rolled out to other agencies.
The service is also expected to appeal to the big ‘billers’ such as insurance companies and telcos as well as retail companies.
Azupay uses the NPP’s speed and data capabilities to enable real-time and contactless point of sale payments both online and in store.
It works by creating a unique, single-use Azupay PayID at the time of payment, which automatically includes merchant information such as the amount and a description.
Whether entered manually or with a simple scan of a QR Code online or in-store, the payment is made using funds directly from the customer’s account, without the need to input additional information.
According to Azupay’s Chris Haylock, the offering has the as the potential to disrupt international players in the Australian merchant acquiring and payments landscape.
“The NPP is the first piece of Australian financial structure in 25 years.
“It was built by Australian banks and with the backing of the Reserve Bank. This service is a way to keep the cost of transactions down in Australia by removing the cost of fees and interest charges”[typically attributed to credit cards]
According to Haylock, its partnership with Cuscal helped the fintech address access and cost challenges.
Azupay has also launched an innovation lab to help other payment fintechs to access the NPP without needing to go through a bank.
“We actually have a simple set of APIs. We have all the expertise in how to use those APIs which will also help fintechs access the NPP.”
Furthermore, he sees the lab has as an incubator for fast payments in Australia.