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INSIGHTS IN BRIEF: AUSTRALIA’S NEW PAYMENTS PLATFORM (NPP)


Delivering Faster, Simpler, Smarter Payments

Tags

  • Australia
  • Financial Institutions
  • Technology
  • Transaction Banking

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

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