BPAY is delighted to announce that it will provide the first service on Australia’s New Payments Platform (NPP), which will deliver businesses and consumers with an immediate, versatile and data-rich service to make their everyday payments.
NPP is the new infrastructure for Australia's low-value payments and is being developed collaboratively by authorised deposit-taking institutions.
Led by NPP Australia Limited (NPPA) and its 12 Participant Financial Institutions, NPP is the industry response to the Reserve Bank of Australia’s strategic objectives on payments innovation.
NPPA announced on Friday 30th October 2015 that BPAY had won a competitive process to build what is currently termed the “Initial Convenience Service” (ICS) that will be the first of many expected overlay services to use NPP.
In August this year, the NPP program reached a key milestone with the successful completion of the “design and elaborate” phase which began in December 2014.
This followed the formation of NPPA and the appointment of SWIFT which will build the NPP basic infrastructure during the current “build and internal test” which is scheduled for completion in early-mid 2017 “
“This new BPAY service will play a key role in establishing the NPP and help accelerate the move away from cheques and cash towards digital payments,” said BPAY Chief Executive John Banfield.
“ICS has the full support of the industry and will be critical in the success of the NPP,” Mr Banfield said.
To be launched in 2017, the ICS will initially consist of a real time payments offering with customers able to immediately transfer funds to and from their bank accounts via their mobile phone, tablet, or via the internet. The functionality and appeal of the ICS will then be expanded to enable organisations (such as governments or businesses) to include documents with their payments, and customers to request a payment from an individual or multiple parties, which can then be tracked through the service.
“The ICS will be a catalyst for further innovation in electronic payments from all Australian financial institutions. This will benefit consumers and businesses alike,” Mr Banfield said.
Authorised deposit-taking institutions can join the NPP as participants at any point in its development or operation or can access the system through arrangements with other participants.
Owned by Australia’s four major banks, BPAY has the track record, technical knowledge and market experience to ensure that the ICS service will hit the ground running and help establish the NPP as a groundbreaking payment system.
Established 18 years ago, BPAY is Australian’s leading bill payments system with more than 150 financial institutions now offering its services. In FY2014/15, BPAY handled more than
368 million payments worth approximately $325 billion.
“BPAY has assembled an expert team ahead of the ICS launch to ensure that it is fully tested to exacting standards, protected by banking grade security. Indeed, integrity and security is fundamental to any payments system and BPAY is committed to ensuring that the lessons from systems in place overseas are all built into the ICS architecture,” Mr Banfield said.
BPAY is excited to be involved in developing the next generation of real time payment products, he added.
“Australia was at the global forefront of the industry when BPAY was established and when the NPP is launched the nation will again rank among the best in class,” Mr Banfield said.
“Closer to home, the NPP will have an intergenerational lifespan that represents a huge step forward not just for the payment of funds but also in the provision of information that helps makes sense of all transactions,” he said.
Published by BPAY Pty Ltd. BPAY is offered by over 150 Financial Institutions. Contact your Financial Institution to see if it offers BPAY and to get the terms and conditions. This is general advice – before using BPAY please review the terms and conditions and consider whether BPAY is appropriate for your personal circumstances.