New Payments Platform

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.[https://www.rba.gov.au/payments-and-infrastructure/payments-system-regulation/past-regulatory-reviews/strategic-review-of-innovation-in-the-payments-system/conclusions/ Strategic Review of Innovation in the Payments System: Conclusions] Reserve Bank of Australia June 2012 The NPP was announced in July 2013 by the Australian Payments Clearing Association.Industry wide program to develop the [https://auspaynet.com.au/media-release/Developing-the-New-Payments-Platform "Industry-wide program to develop the New Payments Platform gets underway"] Australian Payments Network. Retrieved 8 July 2013. 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.{{cite web |title=RBA Advocates A Strong Digital Identity System |url=https://digitalfinanceanalytics.com/blog/tag/npp/ |website=www.digitalfinanceanalytics.com |date=11 December 2019 |publisher=Digital Finance Analytics |access-date=20 September 2022}}

It took approximately 6 years to implement{{cite report|url=https://fastpayments.worldbank.org/sites/default/files/2021-10/World_Bank_FPS_Australia_NPP_Case_Study.pdf|title=World Bank Fast Payments Toolkit Case Study: Australia|date=September 2021|institution=The World Bank Group}} and became accessible to the general public on 13 February 2018 {{cite web |last1=Lekakis |first1=George |title=BPAY Group claims strategy shift at NPPA helped trigger Osko write-down |url=https://www.bankingday.com/bpay-group-claims-nppa-strategy-shift-helped-trigger-osko-write-down |website=www.bankingday.com |date=7 April 2021 |access-date=18 September 2022}} with the introduction of PayID, an addressing capability, and Osko,{{Cite web|url=https://www.osko.com.au/|title=Osko by BPAY|website=www.osko.com.au|access-date=2017-11-03}} 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.[https://www.accc.gov.au/public-registers/mergers-registers/merger-authorisations-register/proposed-amalgamation-of-bpay-eftpos-and-nppa Proposed amalgamation of BPAY, eftpos and NPPA] Australian Competition & Consumer Commission 9 September 2021{{cite news |last1=Barbaschow |first1=Asha |title=ACCC gives green light to Eftpos' merger with BPay and NPPA |url=https://www.zdnet.com/finance/accc-gives-green-light-to-eftpos-merger-with-bpay-and-nppa/ |access-date=18 September 2022 |work=ZDNET|publisher=Red Ventures |date=2021-09-08}}

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.{{cite web | url=https://nppa.com.au/enabling-third-party-payment-initiation-on-the-npp-an-update-on-the-mandated-payments-service/ | title=NPP Mandated Payments Service - enabling third party payment initiation | date=7 May 2020 }}

PayID is NPP's addressing service to enable payments. Its PayTo facility allows for payments to be sent by a user to a PayID.{{cite news |title=Commonwealth Bank Modernises Payments with PayTo |url=https://ffnews.com/newsarticle/commonwealth-bank-modernises-payments-with-payto/ |access-date=20 September 2022 |work=Fintech Finance |date=2022-09-16}} The following chart compares PayID mobile payments via NPP to electronic payments, or bank transfers.

PayID will coexist with the BSB and account number addressing scheme.

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.{{cite web |last1=Lekakis |first1=George |title=BPAY Group claims strategy shift at NPPA helped trigger Osko write-down |url=https://www.bankingday.com/bpay-group-claims-nppa-strategy-shift-helped-trigger-osko-write-down |website=www.bankingday.com |date=7 April 2021 |access-date=18 September 2022}}

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.{{cite report|url=https://treasury.gov.au/sites/default/files/2020-07/new-payments-platform.pdf|title=Inquiry into Future Directions for the Consumer Data Right Submission|date=15 May 2020|publisher=NPP AUSTRALIA}}

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.{{cite report |url=https://www.rba.gov.au/speeches/2023/sp-gov-2023-12-12.html#key-issues-for-2024|title=Supporting the Transition from BECS to Modern Payment Systems|date=12 December 2023|institution= Payments System Board - RBA}}

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).{{Cite web |title=The Best Banks that Support PayID |url=https://payid-pokies.net/ |access-date=2024-07-29}}
• WBC (limit of AUD 250 per transaction or $1,000 daily, Westpac Protect Security Code, Osko services from BPAY)

PayID has been noted in Australia as a vehicle for online scammers on social media marketplaces.{{Cite web |title=NAB warns of new PayID scam targeting Aussies selling items online |url=https://news.nab.com.au/news/payid-scam/ |access-date=2023-03-11 |website=National Australia Bank|language=en-AU}}{{Cite web |date=2023-02-18 |title=Amber tried to sell her bed online. Then she lost hundreds of dollars |url=https://7news.com.au/news/cyber-security/a-payid-scam-is-swindling-online-sellers-out-of-thousands-of-dollars-amber-fell-for-it--c-9750083 |access-date=2023-03-11 |website=Seven News|language=en}}{{Cite web |title=Tasmanians being urged to be alert to PayID scams |url=https://www.premier.tas.gov.au/site_resources_2015/additional_releases/tasmanians-being-urged-to-be-alert-to-payid-scams |access-date=2023-03-11 |website=Premier of Tasmania|language=en}}

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