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What is the New Payments Platform (NPP)?

The NPP is a new payments infrastructure that:
 

  • Addresses the needs of an evolving 24/7 digital economy by giving consumers, business and government departments the means to make fast, versatile and data-rich payments
  • Enables real-time clearing and settlement for both simple and comple­­x payment solutions
  • Simplifies payments through an Addressing Service called PayID as well as offering the ability to include more detailed information with payments
  • Becomes an additional payment option for AUD payments in Australia.
     

NPP is an industry collaboration

The NPP has been collaboratively developed by New Payments Platform Australia Ltd (NPPA) and 13 founding financial institutions (NPP participants), including Westpac. In addition, a large number of other financial institutions are connected to the NPP through one of these NPP participants. You can find out who these financial institutions are on the NPPA website.


The NPP comprises

The Basic Infrastructure, including software and hardware for switching, networking and addressing is provided by SWIFT.

The Fast Settlement Service (FSS) which enables real time, line-by-line interbank settlement of transactions is provided by the Reserve Bank of Australia.

Overlay services - value adding payment services that use the Basic Infrastructure. The first innovative overlay service delivered via the New Payments Platform is Osko by BPAY™.


What is PayID and Osko®?

Osko by BPAYTM is the first overlay service delivered via the NPP.
 

Osko Payments:
 

  • Allow consumers and businesses to send payments to and from eligible accounts at participating financial institutions.  Available funds can be cleared in real-time (typically in less than a minute)
  • Allow for rich data and confidence in delivery, 24/7
  • Can be made to BSB and account numbers or PayIDs
  • Has prescribed service level agreements (SLAs) across all participating financial institutions to ensure a consistent customer experience.
     

Benefits may include:
 

  • Speed - Make and receive payments in real-time, with close to immediate funds availability to the recipient

  • 24/7 availability - Make and receive payments at any time, including outside normal banking hours

  • Data enriched - Send more complete remittance information with payments

  • Simple addressing - Easily address payments to eligible recipients using an identifier like a phone number, email address, ABN, ACN, ARBN or, an organisational identifier

  • Improved allocation - Simpler identification/allocation of incoming payments directed to your PayID at a department/product level. Debtor entries can be closed faster, with lower exception rates – meaning reduced operational overheads

  • Working capital benefits - Access is available for Treasury to invest deposits more efficiently as payments are received in the new near real-time environment – resulting in better cash management

  • Process efficiency - Mandated industry wide scheme SLAs mean payment responses are within a minute, which enables appropriate actions to be triggered quickly. For example, a notification that a payment failed due to the payee account being closed will occur within a minute, enabling accounts staff to address this immediately, rather than wait for notification in the Direct Entry process after two or three days.

Get ready for NPP

When Westpac enables business, institutional and government customers, all NPP eligible accounts will be able to receive NPP payments, as NPP payments can be made directly to BSB and account numbers.

 

In most cases you won’t be able to opt out of receiving NPP payments. If you have given out your bank account details to any clients or suppliers and once these accounts become NPP reachable in the coming months, you may see the Osko and Single Credit Transfers (SCT) transactions in your transaction listing online or in your bank account statements.

 

An SCT is an NPP payment type without a guaranteed funds SLA and as such is infrequently used.

 

As NPP payments are new transaction types and can carry additional data, your bank account statements may look different for NPP transactions. Please ensure you review your current reconciliation processes to determine any impacts from potential NPP transactions.


 

Things you should know

Payments and registration of a PayID may take longer in some instances, such as where there is a technical interruption to the service, there is a payment to a first time payee or when the payment is caught for additional security screening.

The PayID types available to you may vary depending on your customer profile.

BPAY® and Osko® are registered trademarks of BPAY Pty Ltd ABN 69 079 137 518.