Preparing for PayID

What you need to do now that live banking is arriving in Australia, writes Sophie Elsworth

BANK customers will need to set up a PayID as a matter of urgency to stay up-to-date with new technology set to arrive in Australia.

In the coming weeks, financial institutions will start pushing out the highlyanticipated New Payments Platform (NPP), which will deliver 24-hour, seven-day-aweek, instant transfers.

It means consumers will no longer need to share their personal banking information such as BSB and account numbers and will therefore find it much easier to move cash.

Money will now be shifted in a matter of seconds using a PayID that links to a customer’s email address, phone number or ABN for small businesses.

The NPP’s chief executive officer Adrian Lovney said users of a PayID should be reassured that once it’s set up people can only place money into your account and not take it out.

“The only way another person can use your PayID is to put money into your account,’’ he said.

“PayIDs can only be created or paid to within your financial institution’s internet or mobile banking.

“This means your PayID will be protected by the same security that applies to your internet or mobile banking.” To create a Pay ID with your bank – if it is set to join the NPP, which at this stage includes the nation’s big four banks and many others – you will need to firstly do this: Choose what type of PayID you would like to use (most will offer phone numbers, email address or ABNs) and which account you want to link it to.

You can have multiple PayIDs but only one PayID can be linked to an account.

You must verify with your bank that you are the owner of the information and the account which is connected.

Your PayID will now act as a BSB and account number.

CUA’s chief executive officer Rob Goudswaard said they will start notifying their members this week of the changes to help them make a simple transition to faster payments.

“Set it up and be clear on what you want as your PayID, and to have one it means other early adopters of NPP will able to use it to transfer money,’’ he said. “Your need for direct debits will become a thing of the past because you can make cash transfers quickly.”