How To Use PayID: Australia's New Payments Platform


The imaginatively named New Payments Platform (which is a great name until it's replaced one day) promises to make it easier to send money between parties. One of the first applications to use the NPP will be PayID. It will let you send money to other people without having to remember annoying details like BSBs or account numbers.

You create your own unique identifier and funds can be moved between parties in near real-time - no need to wait for batch runs of payments between financial institutions. But how do you get in on this?

Some background

The New Payments Platform (NPP) isn't a new banking product. It's a payments platform upon which the banks can offer their own products. For example, if you're a Westpac customer, then you'll need to activate their Pay to Mobile service in order to use Osko - a payments system that leverages NPP.

ANZ says the service is "coming soon" while CommBank and NAB are ready to go now.

As each bank makes the service available to their customers they'll be notified - at least that's what the good folk at PayID say.

Step 1 - Create your PayID

Depending on which bank you're with, the sign on process to use PayID will vary. But the crux is that you connect a unique identifier - most banks are suggesting you use your mobile number or an email address - as an easy-to-remember reference to the BSB and account number you associate with the PayID service.

If you're a business, you can also use PayID to receive payments from customers. It's not just a consumer banking service.

Step 2 - Sending and receiving money

When you want to send someone a payment, simply request their PayID. Then you can use your online or mobile banking service to send the payment to that PayID, rather than the BSB and account number.

To receive money, just give the other party your PayID and they do the same from their online or mobile banking app.

As some banks will be using the Osko platform to use your PayID for transactions, you may find your bank uses that name rather than PayID to identify the service.


What makes this special?

PayID is only part of the benefit for users. The real benefit of the NPP is that those payments will be processed by the banks, building societies and credit unions within a minute. That means no more waiting hours or, in some cases, days for payments to be processed.

That's the big benefit of the NPP in my view. PayID is simply a service that takes advantage of the new platform.

When can you get it?

As I said, some banks are already offering PayID while others will be coming on board soon. The real benefit will come when there's a critical mass of banking customers using the system. That won't take long as more banks and financial institutions come online.

You can look your bank up to see where they're at.


    Isn't this like Paypal and ApplePay?

      This is really about person-to-person transfers. It's something banks have dabble with but never got right. If I have your PayID i can send you money without you sharing an account number and BSB. So, it's easier that way. But the big change is the underlying connectivity between banks is different so the transfers happen almost instantly.

        Paypal has offered direct transfers using just email address or mobile number for a very long time now. It's good, but lets call it what it is, banks playing catch up.

          Sure, but... fees? And how long does it take for money in a Paypal account to make it into your bank account? Not saying you're wrong but this is more direct. And a lot of people don't have/like/trust Paypal.

          Not really catchup either. It's an a does up bpay in essence run by a 3rd party osko.

    The real question should be, will the banks be mandated to utilise the NPP for all bank transfers or only those that use their 'new app', i.e.; if I login to my online banking app and transfer money to somebody at a different bank using their BSB and account number, will it be real-time or will I have to wait 2-3 days?

      From my experience signing up and reading the information provided by my bank, the NPP/PayID sits alongside traditional transfers instead of replacing it. So to answer your question, real-time is exclusive to PayID use and your 'normal' transfers will continue to take however long they've been taking to date. Personally, I think it's a bit stupid they've done it this way as it adds an element of confusion for the average consumer.

      NPP is a system that allows faster transfers of funds between banks. PayID is a service that leverages it. I'd expect most (perhaps all) payments to eventually go through NPP. So, I'd expect that tractional BSB/account number transfers will also use NPP.

    Is it possible to have multiple PayIDs, each linked to different banks?

      I've been wondering that. At the moment, what I do know is that you can have a personal PayID using your mobile number (or email address for example) to link to a personal savings/cheque account and another that uses your ABN (for example) to link to a business account. In theory, I assume that means you can link a different email address to each different account you have with each bank you deal with.

        A PayID can only be linked to one account, but as many PayIDs as you want can be created for your account, example:

        Mobile Phone + Personal Email Address point to my ING Account (i.e. 2 PayIDs point to 1 Account)

        Different Email Address points to my NAB Account (Separate PayID points to another account)

      I setup a PayID on my ING account (lovely though it doesnt show you what email/phone you are using just the domain/last digits ) lets me create multiple, but of course one payid can only go to one account, so if you have 3 accounts you need 3 different pay ids.

      Interestingly, though i can create a PayID in ING iOS app, i cant seem to make any transfers to a PayID (or they have hidden it well).

    For all the knocks on our banks, Australia does have a very sophisticated consumer banking system. Travelling to Europe (or especially the US) really drives home how slick things generally are here.

    This is the next step in making things easier. Buying and selling second hand stuff will be easier, sorting out bills at restaurants etc.

    Anyone know what the daily limits are - is it capped by your own "pay anyone" limit with your bank?

      Might depend on the bank - I know ING has a $1000 limit for payID transfers per day which is less than their regular transfer amount.

      I'm with ING and the daily limit is $1000, which at this point is unaffected by my personal limit set with the bank and not able to be modified. It's similar to Tap and Go payments being limited to $100 per transaction, which is unable to be modified.

      Each bank will differ according to their own rules. I suspect that, at least initially, there will be some limits to ensure any potential security risks and customer apprehension about risks is managed. But I expect banks to give customers the flexibility to change limits.

        The daily limit according to osko who npp transactions go through is $1000

          There is no NPP/Osko enforced limit at the moment - Its up to each Financial Institution

    Sigh. Bank of Melbourne nowhere to be seen with this. Apparently their waiting on Westpac to roll it out to them, the years of notice they've had wasn't enough...

    I have a few questions...

    But the crux is that you connect a unique identifier - most banks are suggesting you use your mobile number or an email addressING only lets you use the mobile number or email address they already have on file for you. Do other banks let you choose any arbitrary ID? Like the early days of hotmail/gmail/www etc., early adopters could sign up with easy to remember numbers or words and sit on them to monetise later.

    Is it possible to change your ID after you've first set one up? People's phone numbers can change - less now that carriers have to make it easy to transfer your number - but it's still possible your PayID may not match your phone number in the future.

    What happens if you accidentally send money to a wrong number?
    It's one thing to call a wrong number, but a larger issue if you accidentally send $1000 to a stranger. Can the banks reverse a transaction?

      There are only about 5 different things a bank can use to identify you - banks must at a minimum provide mobile and email as an option. ABN is another but I forget what the others are. PayIDs can also be removed instantly and re-set up if you change numbers. Not sure what will happen when people change numbers and forget to update though as the number will eventually be recycled.

      Mobiles are verified via security code sent to the mobile/email address to prevent them being hijacked. Before transferring it will tell you the name of the person you are paying to prevent incorrect transfers.

      And therein lies a BIG security concern that people can confirm the name of an account and mobile number by searching numbers as payID. Email isn't so bad as generally people's email addresses are harder to spam/guess. A workaround is you can create/remove a pay ID for to limit this.

      Its up to each Financial Instution to decide:
      A) What PayIDs they will offer - They can offer Mobile Number, Email, ABN and Organisation ID (Like a word or phrase linked to your business - i.e. a trading name or business name) but they don't have to offer them all.
      B) How they verify that you own that PayID - Most FI's will do this by ensuring that they are your contact details on file - I did notice that NAB allowed you to register other contact details that weren't on file - They verify ownership through a one time password type scenario usually.

    What about privacy? Anybody can get at least full name by a phone number if person chooses to register phone in the system. It will be a heaven for spammers and scammers!

      Good question - I'll be chatting with some NPP people about privacy early next week. I'll make sure this is addressed.

    The amount of disinformation in this article and comments section is truly astounding. I was going to start offering some corrections but I just don't know where to start.

    PayID is an addressing service; nothing more. Osko is a funds transfer "overlay service" that runs on the NPP. It uses PayID to address the receiver of the funds. Osko is currently the ONLY overylay service available on the NPP and was built by BPay.

    You can point multiple "addresses" (email, phone, etc) at a single bank account, but this is limited to what your bank offers (for example, CBA only seem to offer mobile phone at the moment). You can't link one address to multiple bank accounts

    Generally the bank will let you choose how your name should appear when someone tries to send money to your PayID.

    Hi Author and all those commenting here,

    You have made some really valid points, i have some questions in my mind (which has prevented me to make PyaID in Comm and NAB). Consider this scenario: In future i want to receive payments from a person, with whom i don't want to share much of my information with (e.g. selling something on Gum Tree). Now the questions i have are:

    [1] Is it possible to make pay ID which do not comprise of my email or mobile number? Just like Zak pointed (arbitrary ID), selecting a alphanumeric combination, as my payID (e.g. pay2me90210, ShowMeTheDolleryDoos to name just few that pop in mind), is it possible? Context of such combo will be clear enough to me, for remembering easily, but just a gibberish to other person, thus protects my email and phone number from deep web scammers :D

    [2] When the payer puts my PayID in his/her online transfer form, what information (e.g. my name?) is shows to that person to confirm the PyaID s/he is sending money is correct? While making PayID, can i choose what information/phrase is shown to other person? I can tell the payer (while sharing my PayID) that if s/he sees this information/ phrase, it means the payment is going to correct account.

    [3] How often can i change a PayId? Can I have multiple PayIDs for same account? This brings out another question--> If i cannot use arbitrary alphanumeric combination, but I can have multiple PayIDs, then what information constitutes these IDs (remember email or phone number is already taken by 1st PayID)?

    [4] Is PayID payment reversible (for any reason)? If it is (like Paypal), then it will give rise to whole new ideas of scamming. Like pay now, receive item, then lodge a dispute claim (bread and butter of CL and GT scams).

    Please point me to right directions. Thank you for your time.

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