Technology – and the pace of business – is moving faster than ever. So why on Earth do our bank transfers still take as long as a test cricket match? Well, a new initiative bought on by the RBA is set to turn this on its head and create a new benchmark for payment processing thanks to the aptly named New Payments Platform (NPP), set to roll out early this year. Thanks to the NPP, we no longer have to accept that long weekends, holidays and after hour transfers will take extra time to clear. So what are we in for?
The real time payment processing is set to be a game changer for businesses of all sizes and shapes, says Shawn Anderson, Chief Risk Officer at Queensland Country Credit Union.
“With businesses at the minute, payments take time and when you’re a small business operator, that directly affects your cash flow,” Shawn says.
“With the NPP, it’s 24/7, 365 days. So it doesn’t matter if it’s the middle of the night, public holiday or Christmas day; it’s money in real time.”
On top of getting payments in real time, Shawn says businesses will also be able to use easy to remember IDs.
“From launch, people will be able to use a PayID rather than have to remember their BSB and account number. So you have the opportunity to associate their BSB and account number with PayIDs such as a mobile number or an ABN if they’re a small business,” Shawn says.
All of this is incredibly promising for the future of payments – but what about service up-time? Well, it turns out we don’t have to stress about that either, as NPP is able to support a 24×7 digital economy.
Before we get too excited about this though, there is one important drawback that needs to be noted. Only 8 of the 13 participating financial institutions that offer NPP will launch on the same day, so it will take a little time to roll it out to customers. Even so, those customers who bank with participating financial institutions will likely see Osko by BPAY – which will see you receive funds in your account in less than a minute – or NPP payment options in their mobile or internet banking apps from launch.
“Osko by BPAY is what makes your payments speedy. It was developed specifically for NPP so you don’t have to wait hours or days for a payment to be received.”
“This NPP service will come in handy when paying at a group dinner, socialising, or even paying the plumber on the spot.”
“When it came to us hearing and looking at this, it really was a no brainer for us in making sure we had the technology and the platform available for our Queensland Country Credit Union members to access real time payments from day one,” Shawn adds.
Most financial institutions, including Queensland Country Credit Union, will be able to offer NPP from launch but it may take time for widespread use by consumers and businesses to occur, similar to other new payment methods such as contactless payments.
This new technology will not only improve cash-flow, it will also streamline the entire payment process and take a huge headache out of the equation for businesses everywhere. This is no doubt something the entire industry can celebrate – and the best thing? We can pay for our party in real-time while we’re at it!