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Vive la revolution! How payments are changing in 2018

Emily Kucukalic Monday, November 27, 2017 Blog

On Australia Day 2018, a revolution in the payments platform will launch to deliver near real-time processing of payments. Built from the ground up, the New Payments Platform (NPP) will allow us to use email addresses or phone numbers instead of BSBs and it will allow us 280 characters rather than 20 for the payment reference. No more waiting overnight to confirm payments.

The NPP is owned by the Reserve Bank and 13 financial institutions, but it’ll be used across the board. The key features include;

  • Speed (payment and receipting almost immediately)
  • 24/7 availability (yes it’ll work outside business hours and on the weekends)
  • Data Enriched (ability to send much more remittance information)
  • Simple Addressing (with PayID, phone number, email, ABN)

When the platform launches in 2018 the expectation is that there will be more than 60 banks, credit unions, and building societies, that will also have signed up to a new platform addressing service called PayId.

Just think about it. Payers and Payees preferring the use of a mobile number or email to the current requirement to quote BSB/Account Number. A PayID can be moved easily between accounts and between financial institutions.

There’s plenty of great information in the links provided.

Have a read and start considering the implications of the setup of your Payments and Receipting Processing in your ERP!

Henry Fernandez

Henry is the Plaut Advisory Services lead and has been doing SAP stuff for close to 30 years. He is currently exploring a range of interesting technology developments and can sometimes be found in Plaut’s Sydney Innovation Hub.

Click here to get in touch with Henry.

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