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The New Payments Platform (NPP)

What is the New Payments Platform?

The New Payments Platform, also known as the NPP, is Australia’s innovative payments infrastructure, developed to make payment transactions quicker, easier and smarter for businesses and consumers alike. This means payments can be made in line with the always-on nature of today’s digital lifestyle.

The new platform allows for real-time payment clearing and settlement between participating Australian banks and is designed to incorporate data-rich messages. Its purpose is to take the pain out of moving money in Australia.

How is the NPP used by businesses?

The NPP is a platform that enables real-time clearing and settlement for simple or complex payment solutions, between people and businesses. Payments are simplified through the use of a PayID, and are made richer through the inclusion of additional information such as written text or links to other documents.

The introduction of the NPP means an increase in payment options - adding to the methods already in place, such as BPAY®, RTGS, credit/debit cards, cash, cheques and direct entry. While these existing methods will still remain, it’s anticipated that this new real-time payments system will eventually become the preferred payment option due to its enhanced features and overall benefit to businesses and consumers.

Over time, the platform is expected to continue to evolve to meet the ever-changing needs of the market.

Who are the banks behind the NPP?

The NPP has been collaboratively developed by New Payments Platform Australia Ltd (NPPA) in collaboration with 13 founding financial institutions as well as a number of others who are connected by way of these 13 institutions.

The 13 institutions are:

  • ANZ
  • ASL
  • Bendigo Bank
  • Citi
  • Commonwealth Bank
  • Cuscal
  • HSBC
  • Indue
  • ING
  • Macquarie Bank
  • NAB
  • Reserve Bank of Australia
  • Westpac

How does the NPP work?

Above all else, this new payments platform is designed to deliver payment speed, with the promise that both parties in a transaction can access funds in less than one minute. 

The fast payment happens as a result of three separate components working together:



The NPP is a base infrastructure over which payments can move from one bank to another in real time.
Payments can be directed to BSB and account numbers or to a PayID.

The platform will process and settle payments 24/7, 365 days a year.
This is a service from payments platform BPAY, which was launched in February 2018. It's designed to facilitate the real time transfer of funds over the New Payments Platform infrastructure explained above.
Real Time Payments
Zai has developed Real Time Payments to help businesses connect to the NPP. We partner with NPP-connected banks to send a message to Osko instructing it to move money from Account A (the payer) to Account B (the recipient) over the NPP payment rails.

What is PayID for?

A PayID is an easy-to-remember identifier such as an email address, that is set up to link to your bank account. 
Note that you do not need a PayID in order to take advantage of fast payments over the NPP. A PayID can however come in handy as it makes your details as the fund recipient, easier for the customer to remember.

PayID doesn’t replace your standard BSB or account number - it’s a linked ID that you can provide to avoid the hassle of having to remember or to provide those numbers.

What can I use as a PayID for my business?

What is Osko?

Osko is a technology that works with NPP and acts as an enabler to move money rapidly from one account to another. A new product created by BPAY, Osko streamlines the transfer of funds.

You can use an email address. The Zai team can then set this up on your behalf as part of your integration process so that you can receive funds to the account connected to that PayID.

How can NPP payments benefit my business?

This fast payment technology gives you the ability to upgrade your customers’ payment experiences as well as making back-end processing more efficient and cost effective for your business. Key benefits are outlined in the below table.



Money moves in seconds
In terms of features, it’s hard to go past the ability for consumers and businesses to make instantaneous payments between different banks. Where once the lag to receive cash into your account could be up to three days, now payments are available instantly, any time, on any day of the year. This includes payments outside business hours, on weekends and public holidays.
Simpler banking IDs
The inclusion of PayID in the NPP has dramatically simplified the information needed to make a payment, allowing users to use a simple email address or other business identifier as an alternative form of banking ID instead of a BSB and account number.
Easier to identify payments
Transaction descriptions serve an important purpose - they seek to make it easy for both parties to identify what a particular payment is for. Before this new payment platform, these descriptions were limited to just 30 characters, which was often too limiting to be meaningful. The New Payments Platform allows 280 characters to describe transfers.
Improved cash flow
Faster payments allow you to get a better handle on your finances, plan ahead and use less working capital for everyday transactions.
Up-to-date accounts and quicker reconciliations
With more information attached to payments, bank reconciliations are faster and lead to accurate accounts. Debtors can be monitored in real-time and outstanding payments followed up promptly.  Accounting software can also be integrated into the platform to reduce manual transactions.
Pay your suppliers quicker
The ability to pay your suppliers instantly will generate goodwill and help you get things done faster. This not only means increased efficiency but allows you to manage your cash flow more effectively.

How the NPP works for the consumer

The NPP means fast, simple and secure payments between your business and the consumer. Before it was invented, if a consumer wanted to transfer money to a business it could take up to three business days. Now, they can make payments instantly, and best of all, they can do it without having to remember a BSB and account number or a BPAY code.

And because NPP payments are subject to the Reserve Bank’s current real-time fraud screening and detection capabilities, consumers and businesses can trust that their money is safe.

Should I use NPP payments for my business?

If your answer is yes for any of the below questions then the likelihood is that your business will benefit from using NPP.

Considerations for your business


If so, with NPP your business can benefit from...

Receive Payments
Do you currently receive payments straight into your bank account?
Do you often provide payers with your bank account number?
Do you mostly receive payments from individual customers, big corporations, or small business?
Do you want. to automate your reconciliation process?
Is it important that irrevocable funds are cleared rather than wait for three-day clearing to occur?
Would you like to be instantly notified when payments have been received?
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
receiving faster pay-ins
Make Payments
Do you regularly make payments that are out of the ordinary e.g. emergency or out of hours?
Do you use RTGS payments?
Do you require successful payment confirmation?
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
making faster pay-outs
Do you separate departmental or service-based receipts using different or segmented bank accounts?
Are your customers and suppliers happy to share their bank account details with you?
Is it important to receive confirmation that you’re paying the correct person or business?
If a customer or supplier changes banks, is this hard to monitor?
Is it difficult for you to remember your BSB and Account Number when giving it to customers or vice-versa?
Are there human errors by customers or yourself when entering BSB and Account Number?
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
using PayIDs as an alternate payment address

How can my businesses accept and make NPP payments?

Businesses can use Zai to accept payments from consumers or other businesses through the NPP and benefit from:

  • the ability to make, receive and settle payments 24/7;
  • reduced overheads, errors and costs by automating payment acceptance, matching and reconciliation using the Zai API; and
  • bank-grade security and the ability to process large volumes so they can scale.

Businesses receive many payments in a single day and needing a person or team to manage this inflow creates considerable burden. With the Zai API, payouts can be automated and triggered as and when they happen throughout the day. This means payments can be made without being added to overnight batches or managed by a person or team - they’re instant.

Is NPP commonly used by businesses in Australia?

NPP transactions have been growing steadily since its launch, with over 2 million PayIDs created as at the end of September 2019, and over 35 million payments worth approximately $30 billion sent through the platform. 

The business benefit of using faster payments, outweighs all the other means of payment which are either slow or much more expensive. As a result, it is thought that the NPP will continue to phase out direct-entry payments, particularly for transactions that are time sensitive.

PayID is the name given to the addressing service that allows the use of an alternate identifier when receiving or making payments, instead of relying on knowing a BSB and account number. A PayID is created by linking an eligible bank account to a unique identifier such as an email address.

PayID makes it possible to:

  • make and receive payments using simple identifiers, such as an email address, rather than having to rely on remembering BSB and account numbers;
  • easily identify and allocate incoming payments to departments or products; and
  • manage bank account changes easily with no disruption to payments received.

Osko is a service from payments platform BPAY, which was launched in February 2018. It's designed to move funds between individuals or businesses in real-time using the NPP infrastructure network. In other words Osko acts as the vehicle that moves money rapidly across the NPP. The Zai API provides key information on which bank accounts are sending and receiving the money to guarantee a faster and safer transaction.

Zai's API communicates with the banks and your organisation's platform as well as with Osko and the NPP letting them know the amount of money to be moved from the payer to the recipient's account.

These are bank accounts with financial institutions that have rolled out NPP to support faster payments to and from their customers’ accounts.

If a bank account is not NPP-reachable, Zai will send the payment via the traditional Direct Credit.

No, the channel for your customers to send and receive NPP payments is no different to now. They would send money using internet banking (via a browser or an app). Similarly, when money is received, they can check their account balance using internet banking.

For pay ins into your business, customers send payments to your registered PayID. For payouts, payments are made to your customers' NPP-enabled bank account.

Zai's API notifies your business with the status of the payment.

The Zai team can do all of this on your behalf with Real Time Payments. As part of the integration process we set up your PayID if you choose to use one and set your business up so you can start taking advantage of faster payments. 

You can send payments using the the NPP if:

  • it’s a single payment;
  • it‘s made from an eligible NPP account;
  • there are sufficient available funds at the time of authorisation for corporate online users or API submission; and
  • the payment is being made to a participating NPP financial institution.

No, but your customer’s bank account must be NPP-reachable. If it isn't, they can't make payment to a PayID. And they won't be able to receive a real-time payment (instead they will receive via the traditional direct credit overnight).

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