Learn how you will pay and get paid in 2018
- a 60 second guide to the New Payments Platform -
8 February 2018
Whether it’s faster fulfilment of a drop shipment or simply paying for your share of a meal, the New Payments Platform (NPP) is set to underpin the Australian payments economy enabling the fast and secure flow of money.
The NPP is launching shortly, so it is important to learn a little more about how this platform will change the way we pay and get paid.
With the NPP tests almost complete, it is expected that more than half of Australia’s financial institutions will be ready to offer services in the first wave. With no exact time set, we are all sitting back and waiting for the service to go live soon.
There has been an abundance of NPP information so, we are talking to key players to understand what businesses and consumers can expect on Day 1.
According to Indue CEO Derek Weatherley customers can expect the Australian payments experience to leap forward.
“As mobile penetration has exponentially grown, and digital experiences have flourished, the Australian payments system needed to keep pace and provide service to consumers in a manner consistent with those expectations.
“NPP is the start of that digital modernisation of payments and customers can expect to see some immediate benefits in person to person payments initially and then a range of other enhancements to other types of payments in the future.”
One of the initial key benefits is the launch of PayID - a system that allows a simpler way of addressing payments by sending them to mobile numbers or e-mail addresses or other easy to remember addresses. And Osko by BPAY ensures payments are received in less than a minute.
The UK’s Faster Payment experience would indicate that a real time system enables faster payment and a potential platform for faster fraud. Immediate settlement of funds means that there is no recourse to recover funds once sent, increasing the importance of real time fraud monitoring.
With fraud monitoring and data security critical to the safe launch of the NPP, financial institutions like Indue are taking steps to prevent fraud in a manner that does not disrupt the frictionless digital experience NPP sets out to deliver.
Indue Orion Financial Crimes have partnered with IBM to deploy Safer Payments, a fraud detection and prevention engine which utilises Artificial Intelligence and machine learning capabilities to tap into decades of human experience.
“Our Orion Financial Crimes model for fraud management aggregates all of our client’s transactions through one service, meaning we are able to design and deliver data-rich, intelligent solutions. It also enables us to identify fraud and emerging trends quickly and respond appropriately,” said Weatherley.
Australians access to NPP
Post NPP launch, everyday Australians can expect to see advertising and promotion of OSKO by BPAY and PayID.
Products on offer
The initial launch offering is a person to person ‘push’ payment and most financial institutions in Australia will launch that service on day 1.
“Over time we expect to see other enhanced payment experiences delivered in various ways through the NPP system,” Weatherley concluded.
Indue, as a founding participant of NPPA, offers a gateway solution to enable financial institutions and other clients the opportunity to access NPP. Indue offers an API based solution and provides all of the payment processing, settlement, fraud monitoring, exception management and regulatory services on behalf of any organisation wanting full service support around connectivity.
Catherine Batch - PCN Associate based in Brisbane.