Credit Management New Payments Platform heralds a new era for efficiencies Efficiencies in credit management could soon receive a significant boost thanks to the upcoming launch of the New Payments Platform — new infrastructure for Australian payments being developed through a major program of industry collaboration. The New Payments Platform promises Australian consumers, businesses and government the ability “Already the to make near real-time payments, 24 hours a day, 365 days a year. It Australian public will also allow more data to be sent with these payments, such as longer has embraced descriptions or attached remittance electronic documents. The platform can also simplify Adrian Lovney payment the payments process through an Addressing Service, which offers methods — chip cards (contactless or methods... But users the ability to direct payments “wave and pay”), BPAY, direct entry for this evolution to accounts via an easy-to-remember — and new technologies such as identifier like a phone number, email smartphones. But for this evolution to continue, our address, ABN or organisational to continue, our basic payments identifier. This service will be called infrastructure needed an upgrade to basic payments PayID, and will be promoted closer to enable a shift to immediate payments. the time the platform launches. “At the same time businesses need infrastructure According to CEO of NPP to be able to improve their efficiency needed an Australia, Adrian Lovney, the New and costs, and the New Payments Payments Platform was born from Platform offers the potential for upgrade to an industry that recognised the payments to be reconciled more need to progress payments to meet easily, make cash flow much more enable a shift the evolving demands of a digital predictable, as well as improving economy. the management and reconciliation to immediate “Already the Australian public of inventory and stock between payments. has embraced electronic payment suppliers,” Mr Lovney said. 20 CREDIT MANAGEMENT IN AUSTRALIA • May 2017 Credit Management The history of the New Payments Platform The NPP came to life following a strategic review of the Australian payments system by the Payments System Board of the Reserve Bank of Australia (RBA) in 2012. This review identified a range of additional features which were desirable in the Australian payments system, principally the capability to make payments in real-time. From there, a number of industry players came together to form the Real-Time Payments Committee (RTPC) and submitted a proposal that highlighted how payments systems and schemes around the world are becoming more commercial and How does the platform work? The future of payments competitively oriented, and Australia There are three key components The first Overlay Service delivered via must proactively adapt. to the New Payments Platform the New Payments Platform will be As a result the RTPC infrastructure: delivered by BPAY. With an entirely recommended a new layered business 1. The Basic Infrastructure: This separate brand to BPAY, this offering architecture for payments clearing includes a network (which will be the first consumer experience and settlement, and a system that connects participants), a switch of the platform’s speed, convenience offered a range of new real-time (which moves messages between and data capabilities. Over time it’s payment services to consumers, participants via the network) expected that more innovators will businesses and government. and the Addressing Service leverage the platform’s features to Eventually this proposal evolved into (PayID) which enables transaction offer more ground-breaking payments the New Payments Platform. accounts to be identified by experiences to the Australian public. NPP Australia Limited (NPPA) was an easy to remember identifier According to Mr Lovney, what these formed in December 2014 to oversee such as an email address, phone new experiences could look like is in the build, operation and management number or ABN number. the imagination of these organisations. of the NPP. Adrian Lovney was 2. The Fast Settlement Service: “It’s likely that the transmission appointed as the inaugural CEO of Provided by the Reserve Bank of of data along with payments will NPP Australia in September 2016. Australia, it enables every single mean business applications will be a payment made on the platform, key focus. As well as opportunities When will the NPP be regardless of its size, to be settled in industry verticals, such as funds available? in real-time in central bank funds, management, in and around the stock On the platform’s availability, across each financial institution’s exchange, or in the insurance and Mr Lovney said that like any project Exchange Settlement Account. superannuation industry,” he said. of this magnitude there is a complex 3. Overlay Services: This is and thorough testing regime to name given to the payments Who is involved? complete before a decision is made related products or services, While the platform is being to make the NPP publicly available. and that will use the Basic collaboratively developed and Subject to this testing, the Australian Infrastructure. These products funded by 13 participating financial public can expect to see services or services could offer vastly institutions, a large number of offered via the NPP ramp-up from different experiences, or similar additional financial institutions will October 2017. experiences, and in many cases also connect to the infrastructure could compete with each other. through one of the initial Participants. This is where the New Payments You can see the list of Participants at Platform breathes life into the New Payments Platform website For more information about the New innovation and competition. here: www.nppa.com.au Payments Platform visit: www.nppa.com.au May 2017 • CREDIT MANAGEMENT IN AUSTRALIA 21.