Australia rolls out real-time payments network
Written by Chris Lemmon
A new payments system has officially launched in Australia, enabling businesses and consumers to transfer money instantly between different banks.
Around 60 banks, building societies and credit unions across the country will commence rolling out the new platform today, following a successful trial in November last year between employees at a number of financial institutions.
Customers will now be able to make payments in real-time between accounts at different institutions, and can complete the transaction at any time of day, any time of the year. Payments will now include much more accompanying information than before, while customers can also use a PayID – a simpler way to pay that shows the name of the person or business before payment is sent.
The system has been introduced by New Payments Platform (NPP) Australia – a company which was established in December 2014 to oversee the build and operation of the platform – in collaboration with SWIFT. NPP Australia is mutually owned by the initial 13 participating institutions.
Adrian Lovney, CEO of NPP Australia, commented: “We know that Australians are frustrated about the amount of time it takes to move money between accounts at different banks, which can sometimes be as long as two to three days.
“We expect over the next month or so, Australians will be able to transfer money instantly to each other. And they will be able to make those transfers 24 hours a day, seven days a week, every day of the year, including public holidays,” Lovney continued.
“As you can imagine, rolling out something as complex as real-time payments cannot simply happen overnight – it needs to be carefully planned. We do expect that within about a month after launch around four in five Australian accounts will be connected to the platform, through a wide and diverse range of banks, building societies and credit unions.”