New Payments Platform
The New Payments Platform (NPP) is a world-class payments innovation that will enable Australians to make real-time payments to each other 24/7, 365 days a year. Customers can use their mobile phone number or email address to receive and initiate payments, rather than BSBs or account numbers. These payments can be between two or more people.
How does it work?
- Customers will be required to register a PayID
- A PayID is an address for receiving payments, created by linking an account (e.g. Orange Everyday) to a recognisable alias such as a mobile number or email address
- A PayID can only be linked to one account at any given time. However customers can have different PayIDs that are linked to different accounts
- Their bank, building society or credit union will invite them to create a PayID within their usual online or mobile banking app. Once the steps to create a PayID is complete, the financial institution will then link the PayID to a bank account so it acts like a ‘pointer’ to the customers’ account. Then when someone wants to be paid, they just give the other person their PayID. If that person banks with an institution that doesn’t offer PayID yet, they can still make payment by pushing their BSB and account number.
The NPP will simplify the way Australians go about their everyday lives and business. Examples include:
- Not having to take cash when exchanging items with strangers when buying and selling through digital market places (e.g. GumTree or Facebook’s Market Place)
- Getting money instantly to family and friends in need
- Paying small business owners as soon as a job is complete.
McQueen Financial Group is a corporate authorised representative of Total Financial Solutions Limited. AFSL No. 224 954, ABN 94 003 771 579
This information is of a general nature only and does not take into account your investment objectives, financial situation or particular needs. You should not act on any information in this report without first consulting a professional investment adviser in order to ascertain whether the information and any investment decision is appropriate. This information is believed to be accurate however no warranty of accuracy or reliability is given in relation to any advice or information contained, and neither TFSA or its Representatives and officers, agents or employees of either of the aforementioned shall not be held liable for any loss or damage whatsoever arising in any way for any representation, act or omission, whether express or implied (including responsibility to any persons by reason of negligence).