The New Payments Platform (NPP) will continue to innovate as it aims to be a “world-class” payments system ahead of its launch date in October.
Speaking at RFi Group’s Australian Retail Banking Summit in Sydney last week, NPP chief executive Adrian Lovney (pictured), provided an update on the progress of the real-time payments platform.
He acknowledged that a number of existing real-time payment platforms are being rolled out in regions such as Europe, Singapore and the United States.
“One of the advantages of launching later in the year, is that it provides us with an opportunity to assess what is happening around the world,” Lovney said.
He highlighted features already included in a number of these global payment platforms including extended business-to-business remittance and universal access.
“When the NPP goes live in October, it will have all features that will make it really be part of a world class payment system,” Lovney said.
Bank switching made easy
While BSB and account numbers can be used on the NPP, the NPP’s PayID allows users the option of using their mobile number as the identification for their underlying bank account.
According to Lovney this will make bank-switching easier.
“If a customer wants to change a to a new financial institution they can simply delink their PayID from their old account to the new account. This will happen automatically. NPP should make this aspect of bank switching easier.”
While the benefits will be obvious - using the NPP to send or receive payments real time, on a 24 hour, seven-day basis, every day of the year - the platform will also be positioned to allow users to create new products or services known as an “overlay service”.
BPAY was selected from a tender process to provide the initial “overlays” or features for the platform. Last week, the electronic bill payment provider announced the launch of Osko – which will provide the first overlay of the NPP.
Previously known as the Initial Convenience Service (ICS), Osko is the first product to use the capabilities of the NPP.
“Osko is not a bill payment service. What it will do for the NPP is provide easier messaging, the ability for users to request to be paid, immediate payments confirmation and easily tracked payments," explained Lovney.
He expects Osko to be included in the majority of financial institutions’ mobile and internet banking platforms.
Other examples of potential overlay services include the ability for consumers to purchase a car with an all-in-one registration transfer, finance check, stolen check and write-off check – an initiative Lovney seemed particularly excited about.
Other sectors such as insurance and superannuation are also set to benefit through automated payment processing of contributions and benefits.
“The [Federal] Government is certainly planning to use NPP for payments such as emergency welfare and a number of government organisations have expressed interest in the platform as well," he said.
Other innovations include flexibility with the PayID capability where more aliases can be designed. Lovney said aliases can be linked to registration plates where the user’s account is automatically deducted to pay for tolls or parking.
He re-emphasised the importance of the rich data that the platform will bring to the industry making it distinct from its global counterparts.
“The use of the ISO20022 data standard in the NPP will mean that the platform can be readily used by business and industries for B2B transactions where rich data is transmitted with value”