Marnie Ryan Senior Manager, Engagement, New Payments Platform Australia New Payments Platform Australia and ABSIA Webinar 29 March 2019
Marnie RyanSenior Manager, Engagement, New Payments Platform Australia
New Payments Platform Australia and ABSIA
Webinar
29 March 2019
New Payments Platform key capabilities
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• Simpler addressing
• Data rich capability with ability for data to be carried with the
payment
• Real time movement of money, account to account with real time
central bank settlement
• Always available, 24x7, 365 days
How does the NPP work?
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• Distributed switch of
individual ‘Payment Access
Gateways’ hosted by
financial institutions who
have chosen to connect
directly
• These gateways route and
exchange financial
messages between each
other using NPP ISO 20022
messages
• Payment messages are
cleared between
participating financial
institutions and then settled
by the RBA’s Fast Settlement
Service
Bank
Channels
Payment
Gateway
Bank Customer
(e.g. Jack’s Coffee Shop)
Addressing
Service
Fast Settlement Service
Reserve Bank Information and
Transfer Service (RITS)
Reserve Bank of
Australia
Clearing Request and Notification
Settlement Notification
Payment
Gateway
Bank
Channels
NPP Participant
(e.g. CBA)
Settlement Notification
Settlement Request
Payment Gateway
Overlay Services (e.g. Osko)
Payment Gateway
Back Office
Connected Institution
(e.g. Telstra)
Identified Institution
(e.g. Credit Union S.A.)
Non-Value Messages Non-Value Messages
Basic Infrastructure
NPP Participant
(e.g. NAB)
Bank Customer
(e.g. Coffee Supplier)
Bank Customer
(e.g. Liz’s Coffee Shop)
NPP’s Addressing Service, PayID
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• Enables payments to be directed to an account using an easy to
remember alias (a PayID) which has been linked to an underlying
bank account
• PayIDs can be easily moved from one bank account to another
along with all of the associated payments linked to a PayID – so no
need to maintain up-to-date details for a customer’s bank account
• Currently four alias types are supported – phone number, email,
ABN and an Organisation Identifier
• NPP also continues to support payments using BSB and account
numbers
• Using PayID to direct a payment provides the ability to confirm the
intended payee recipient before the payment is made
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Number of registered PayIDs
2.5 million
Accounts can make and receive NPP payments
52 million 400,000+Daily NPP transactions
Total cumulative value of NPP payments since launch
$75 Bn
Largest single transaction across the NPP
$17 million
90 million+Transactions sent across the platform
As at February 11, 2019
Over 75Participating Financial Institutions
Growth in monthly transaction volumes
Double digit
Recent use case
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Centrelink deploys NPP for real time emergency payments
• NPP used to distribute $2.2 million in
Australian Government Disaster Recovery
Payments for February’s Townsville
Floods
• Centrelink currently sending $5 million
across the NPP for emergency assistance
including domestic and family violence
Focus on capability development
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NPP API Framework and API Sandbox NPP ISO message usage guidelines
QR code standards
Role of NPP APIs
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Third Party
(Corporate, Merchant,
Fintech, Government etc.)
NPP
Payment
Gateway
NPP
Participant
API
• APIs will play a critical role in helping to expand the ecosystem to third
parties and enabling them to interact with the platform
• Focused on establishing standardisation and interoperability with the
launch of the NPP API Framework v1.0
• NPP API Framework v2.0 currently under review with plans to publish
in April 2019
• APIs published by NPP Participants
Version 2.0
Being published Q2 2019
NPP Payment Initiation
APIs
API [Payment Status
Request]
pain.a10
NPP PayID
APIs
NPP Payment Status
APIs
API [Payment Initiation
Request]
pain.a09
API [PayID Resolution
Request]
pain.a11
API [Request for Return]
camt.a10
API [Payment Cancellation
Request]
camt.a09
NPP Payment
Cancellation Request
APIs
API [Notification of
Payment]
camt.a11
API [Notification of Return]
camt.a12
NPP Payment
Notification
APIs
NPP API sandbox
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• Intended to enable third parties to
learn more about the NPP and
test different scenarios
• Secure, cloud based facility
• Beta version contains a number of
static scenarios and will evolve
over time
• If you would like to register for
access to the NPP sandbox,
please visit our website at
www.nppa.com.au for the
registration form
NPP ISO 20022 messages
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Development of NPP ISO 20022 message usage guidelines for payroll, PAYG tax and superannuation
payments on the NPP
PayrollSuperannuation PAYG Tax
• Use of structured data fields within ISO 20022 messages
• Ensures uniform approach to data and consistent end to end transmission of data from
Payer through to Payee
• Defines specific message elements that should be included
• Use of category purpose codes to identify type of payment
• Current focus is payments only; long term focus on payments and data transmitted together
• Message work will also be aligned with the NPP API Framework
Future use case: Making payroll payments on the NPP
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1. Mike’s Place
processes their payroll
via their payroll
provider’s software
2. The payroll provider submits a
file to Mike’s Place’s bank. The
file contains employees’ PayIDs,
salary, tax information and
superannuation details
3. Bank looks up employees’
PayIDs to direct salary
payments to their current
bank accounts
4. Bank sends salary payments to be
made along with messages for
superannuation disbursements and
tax payments to several financial
institutions via the NPP
5. Mike’s Place’s employees receive their
payroll and payslip data in real-time.
The ATO and super funds receive
employee contributions in real-time
6. Mike’s Place receives
confirmation that payroll
has been completed
Paid
NPP and QR codes
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NPP Australia are developing a QR code standard for NPP payments:
• Based on EMVCo QR Code specifications
• Defines mandatory elements required to ensure consistency of NPP payment
• For static and dynamic QR codes
• Able to be used for bill payment, invoices, e-commerce and at a later stage, POS
terminals
NPP Use Case - QR Code on Invoice
1. Invoice includes a unique QR
code
2. Customer scans the QR code
using their banking app -
payment details are filled in
automatically
3. Customer approves the
payment and invoice gets paid
Payee: Joe’s
Carpentry
Amount: $1,210
Approve
NPP vision
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Achieve ubiquitous reach with
ever transaction bank account
in Australia able to make and
receive NPP payments
World class payments infrastructure to enable commerce and the Australian digital economy
Deliver capability that supports
innovation, is reusable and
extendable across all payment
types from P2P payments
through to B2B
Use data standards to support
processing and efficiency
improvements across the
economy, from small
businesses to government
Provide fair and open access
to the platform to ensure wide
and diverse participation in
the NPP
Support different payment types
(including both credit and debit-
like messaging) to maximise
volume and utility of platform
Support the ability for third
parties to be able to initiate
payments in a standardised,
consistent and secure way
Q&A Discussion
Marnie RyanSenior Manager, Engagement, NPP Australia
Shannon LewisSenior Manager, Engagement, NPP Australia
Thank you
©2019 NPP Australia Limited (ABN 68 601 428 737)
Disclaimer: This presentation is for general information purposes only. Neither this presentation, nor any information contained in it, shall form the basis
of any contract between NPP Australia Limited and any person, nor constitute a commitment by NPP Australia Limited to any person.© NPP Australia Limited
For more information please contact
the NPPA team on [email protected]