INSIGHTS IN BRIEF: AUSTRALIA’S NEW PAYMENTS PLATFORM (NPP)
Australia’s payment landscape is rapidly changing. With the introduction of the New Payments Platform (NPP), Australian enterprises, businesses and consumers will have the ability to send near real time and data rich payments.
Key Takeaways
- The New Payments Platform (NPP) will give enterprises, businesses and consumers, a platform to make fast, near real time, data-rich payments to meet the evolving needs of a 24/7 digital economy.
- The unique layering of NPP infrastructure, the separation of messaging, addressing and settlement system, will enable the ongoing evolution and development of payment services well into the future via overlay services.
- NPP opens up opportunities for the creation of new overlay services to offer payment enrichment capability. This potentially supports the development of value-add or ‘disruptive’ services, enabling you to redefine your customer experience.
- Changes to working capital as a result of funds received near real-time (for AUD to AUD payments) may impact how funds are managed and optimised, including outside traditional business hours.
- NPP is expected to be delivered to market early 2018.
WHAT IS OSKO® BY BPAY®?
Osko by BPAY is the first overlay to be delivered over NPP infrastructure and will be the common name to send payments to payees on the NPP’s near real-time clearing and settlement platform. It is expected that between 40 – 50 institutions will offer Osko by BPAY Australia-wide at its launch in early 2018.
Osko Payment (Service 1) has a number of unique characteristics. Funds will clear through SWIFT and settle using the Reserve Bank of Australia’s (RBA) Fast Settlement Service, enabling payments to be received within 60 seconds (99% of the time). To facilitate data-rich payments, the ability to include 280 characters of reference text will enrich information that can be sent and received.
Australian consumers and businesses will also be able to register a PayID to receive funds against. This could be an easy-to-remember identifier such as a mobile phone number, email address or an ABN. PayID reduces reliance on BSBs and account numbers to make payments between Australian financial institutions.
Future overlay services under discussion include: Payment with document (Service 2) and Requests (Service 3).
GETTING READY
(For Australian based customers of ANZ Transactive and/or ANZ Fileactive digital channels)
Soon after NPP’s launch, it is likely that you will receive Osko payments. As a result of this, you may see Osko transactions appear in your account statement. If you are an Australian based customer of ANZ Transactive and/or ANZ Fileactive, it is critical to understand how to identify these payments to assess any implications to your reconciliation processes. Please download the “Getting NPP Ready” document at the bottom of this page for further details.
WHAT CAN NPP DO FOR YOU?
NPP will have different application across industry segments. Here are some potential use cases of how NPP can change the way business is done.
Other potential Industry examples include:
- Government agencies will have the ability to make urgent welfare payment(s) (could extend to ATO tax refund).
- Retailers can process customer refunds requests to a PayID instead of a cash refund, reducing reliance of on-site cash.
- Utility and Telecommunication companies can process a customer request for refund of overpayment or incorrect charges within the same phone call.
- Auction Houses can pay vendors for goods sold on their behalf and customers can pay for goods purchased at auction.
YOUR NPP PARTNER
ANZ is building a strong NPP market proposition:
- An NPP proposition for our entire customer base (Retail, Corporate & Institutional).
- Successfully securing competitive Agency bank mandates (e.g. other banks, building societies, credit unions) – signalling the market’s endorsement of our market leading positioning and NPP offering.
- Investment in future NPP initiatives planned for 2018 beyond base NPP enablement.
- Our dedicated team of payments professionals with experience implementing similar “fast payments” programmes in the UK and Singapore.
1. Osko® is delivered by BPAY® Australia.
2. BPAY® and Osko® are trademarks of BPAY Pty Ltd ABN 69 079 137 518.
PUBLISHED OCTOBER 2017
GETTING NPP READY – ACCOUNT STATEMENT INFORMATION
RELATED INSIGHTS AND RESEARCH
insight
Australia’s New Payments Platform: Changing the Way Banks and Insurers Do Business
Imagine being able to make real-time data rich payments easily and quickly, any time, any place.
insight
Uncleared OTC Derivatives: Margin Reforms and Implications For Counterparties
Banking regulators are moving to reduce the systemic risk associated with OTC derivatives.
insight
Bridging the FX gap — Strategies to Counter EM Currency Risk
As fund managers increasingly seek emerging market assets, they must develop a robust emerging market currency hedging strategy.
For a full set of relevant disclosures, please visit the link below.
These publications are published by Australia and New Zealand Banking Group Limited ABN 11 005 357 522 (“ANZBGL”) in Australia on its Institutional website.
If you choose to access these materials, you agree that the Website Terms of Use apply. These publications are intended as thought-leadership material. They are not published with the intention of providing any direct or indirect recommendations relating to any financial product, asset class or trading strategy. The information in these publications is not intended to influence any person to make a decision in relation to a financial product or class of financial products. It is general in nature and does not take account of the circumstances of any individual or class of individuals. Nothing in these publications constitutes a recommendation, solicitation or offer by ANZBGL or its branches or subsidiaries (collectively “ANZ”) to you to acquire a product or service, or an offer by ANZ to provide you with other products or services. All information contained in these publications is based on information available at the time of publication. While the publications have been prepared in good faith, no representation, warranty, assurance or undertaking is or will be made, and no responsibility or liability is or will be accepted by ANZ in relation to the accuracy or completeness of these publications or the use of information contained in these publications. ANZ does not provide any financial, investment, legal or taxation advice in connection with these publications.
If you are resident or located in the United States of America, you agree that you are not acting on behalf of a natural or individual (including yourself) “U.S. person” (as defined in Regulation S of the U.S. Securities Act of 1933, as amended) and you agree not to transmit or otherwise send any information on this website to any natural or individual person in the USA or to publications with a general circulation in the USA.
If you are resident or located in New Zealand, you are a “wholesale client” under the Financial Advisers Act 2008 (NZ), as amended.
Please confirm that the above statements are correct.