Send it quick smart

After just four months, 1.6 million Australians are using a simpler way to pay, writes Sophie Elsworth

THOSE dining out with friends and struggling with splitting the bill, or trying to pay a tradie without the right amount of cash, are slowly catching on to the newest way to pay.

The New Payments Platform (NPP) was rolled out in February, allowing banking customers to pay another person using a mobile phone number or email address.

This means you do away with chasing down someone’s BSB and account number or coming up with the right cash.

In the five months since its inception, 1.6 million Australians have established a new payment identity – known as a PayID –allowing them to make 24-hour, seven-day-aweek instant transfers.

It has taken months for more than 60 financial institutions to join the NPP – not all are on board yet – enabling customers to make real-time payments via Osko, a person-to-person payment using a customer’s phone banking apps or online login.

NPP Australia’s chief executive officer Adrian Lovney said as long as a customer’s bank is on board the NPP – all of the Big Four banks have signed up – they can create their PayID and begin moving cash in an instant.

“They can register a PayID, which can be something that’s easy to remember – like your phone number or email address – that can be used instead of a BSB or account number,’’ he said.

“PayID can never be used to take money out of your account, it can only be used to put money into your account.”

Mr Lovney said using a PayID can also help reduce the chance of making a mistaken payment or entering a recipient’s incorrect banking details.

Data from ING shows more than 200,000 customers or 20 per cent of their Orange Everyday account holders have created a PayID.

Latest figures show more than 9.5 million payments worth $5 billion have been sent using Osko and the typical payment size is about $120.

Beyond Bank’s general manager of customer experience Nick May said 25 per cent of their customers have created a PayID and can move money on the spot.

“It’s real-time payments as opposed to having to wait 24 to 48 hours,’’ he said. “Usually it’s for simple and easy payments to family and friends.”