The New Payments Platform (NPP) is new infrastructure developed specifically for Australia’s low-value payments. It will provide Australian businesses and consumers a fast, versatile, data-rich system for making everyday payments.
The NPP is being developed collaboratively by authorised deposit-taking institutions. It is the industry response to the Reserve Bank’s strategic objectives on payments innovation and implements the former Real Time Payments Committee’s proposal on innovation in the payments system.
An industry steering committee is overseeing development of the NPP, and first met on 20 June 2013. It comprises senior representatives of the Australian banking and mutual sector, an alternative payments provider and the APCA CEO. KPMG has been appointed program manager to ensure a well-resourced, highly collaborative industry platform. Indue is one of 17 participating financial institutions in the NPP.
The NPP will comprise a basic infrastructure, which all financial institutions (and through them businesses and consumers) connect to. This will allow payments to be made quickly between financial institutions and customer accounts. The system will enable funds to be accessible almost as soon as payment is received – even when the payer and payee have accounts at different financial institutions.
As well as being fast, the NPP will be versatile. The basic infrastructure will support various ’overlay’ services – specially tailored services that individual financial institutions may choose to offer their customers.
This multi-layered infrastructure has been designed to promote competition and drive innovation in payment services. It ensures the NPP will be equipped to meet the evolving needs of Australians in the digital age and beyond.
In addition to fast payments, by late 2016, the NPP will provide the following:
In conjunction with the NPP, the RBA is developing the Fast Settlement Service (FSS), a new RITS service supporting NPP payment settlement. The FSS will settle individual NPP payments irrevocably and unconditionally in near real-time. Its infrastructure will be owned and operated by the RBA and will be integrally linked with the NPP. The delivery of the FSS will align with delivery milestones for the NPP.
For more information, please click here: https://indue.com.au/products-services/payments/new-payment-platform/