Soon after Australia Day, Aussies will have another reason to celebrate with the release of the new payment platform (NPP) expected in late January.
It’s set to change the way we do our banking, offering ‘real-time’ online payments to bank accounts within minutes. You’ll also be able to purchase big ticket items like a car and there’s even talk about NPP replacing cheque books at auctions, helping prospective first home buyers put down a deposit in a faster and smoother fashion.
You won’t even need the recipient’s BSB or account number to make the transaction - just their email, mobile number or ‘PayID’.
“I think this is exactly what Aussies have been waiting for. The new system will make it easier to pay each other and it’s great to see banks welcoming the change,” said Mozo Data Manager, Peter Marshall.
But despite agreement amongst banks to embrace NPP, the driving force to complete the new service came from the Reserve Bank, as the service will be linked to their Final Settlement Service.
"This system has the potential to be transformational and will allow many transactions that today are conducted with banknotes to be conducted electronically,” said RBA Governor, Philip Lowe in December last year.
Which banks will offer NPP?
There are currently 13 banks/financial institutions who will offer NPP, they include:
- Australian Settlements Limited (ASL)
- Bendigo and Adelaide Bank
- HSBC Bank Australia
- ING Direct
- Macquarie Bank
However if you think the list looks small, there are also around 50 smaller organisations, mutual banks and credit unions that are expected to connect to NPP indirectly, meaning they’ll join the service through one of the providers listed above.
And while the system is already up and running, it’s undergoing intense testing and will be made available to consumers within the next two weeks.
With all the innovation happening in the banking space, it might be time to review your current bank account and see if there's a better option, check out our bank account comparison tool, which currently compares 107 accounts from 56 banks!