New Payments Platform (NPP) Questions

The New Payments Platform (NPP) is an industry-wide faster payments system providing a national infrastructure for flexible, data-rich payments in Australia. The platform facilitates real-time clearing and settlement of fast payments between participating Australian financial institutions.

NPP payments can be sent to or from your bank account using PayID or by addressing the NPP payment to a BSB and Account Number. This is also known as Account-to-Account (A2A) payments or Pay by Bank.

NPP Australia supports the concept of overlay services where approved payment services can add additional functionality into the payment experience. The first example of this was the Osko payments service delivered by the BPay team (now within NPP). Osko is a familiar brand name to many Australians who have become used to seeing it within their internet banking. NPP payments sent via Osko cost your financial institution a small additional cost and in return the payments system guarantees that the payee account holder - the recipient of the real-time payment - sees notification of the fast payment within a certain time. In practice, NPP payments in Australia generally arrive with the payee rapidly so Osko payments are less popular now than originally expected.

PayTo is an exciting new service, also delivered by NPP Australia that is designed to replace Direct Debit, now also seeing growth in use cases replacing credit card and debit card payments to make payments within transaction limits directly between bank account holders.

Please refer to Find an institution - NPPA for a list of NPP participants.

The list includes most financial institutions including major banks and credit unions. An Australian bank or credit union on this list is known as a Participating Financial Institution.

The NPP payments infrastructure offers API access to check a Financial Institution’s status so businesses like Azupay can offer our corporate clients the ability to check whether a BSB is addressable via NPP before trying to make payment.

PayID is the New Payments Platform (NPP) bank account addressing service that makes paying money to any bank account fast, safe and easy without knowing or remembering account number details (for more information, see http://www.payid.com.au).

PayIDs for consumers are often the bank account owner’s mobile phone number but it can also be their email address. This makes the PayID easy to remember and is recognisable to the account holder as well as to anyone who knows their mobile number. Businesses can use their phone number, email address or other organisation id such as their ABN identifier. By using easy to remember and recognisable identifiers PayID is effective at reducing errors and can help protect against fraud and scams.

Azupay offers a proprietary PayID Receivables solution on top of the NPP payment system that automatically provides payers with a unique PayID created in real-time for their merchant, in the form of an email address the payer will recognise. The payer can then use this PayID to transfer money from their internet banking or mobile banking app. Azupay’s PayID payment service manages the funds settlement and payment validation process with the merchant.

Click on this link to understand more on PayID benefits.

PayTo is a modern digital payment solution offering a fast, easy and secure way to pay. It gives consumers more visibility and control over their payments, and enables merchants and businesses to initiate real-time payments from their customers’ bank accounts.

Originally designed to replace Direct Debit and bring the benefits of NPP’s fast payments infrastructure to recurring payments the well structured data, ability to use the PayID addressing service and the real-time payments settlement and notifications has resulted in PayTo being useful for replacing BPay, credit cards and other payment services.

To understand more about PayTo, read here: PayTo - See & manage payments from your bank account