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You can find the current article at its original source at https://www.theguardian.com/australia-news/2017/oct/03/banks-to-switch-to-real-time-payments-from-australia-day
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| Version 2 | Version 3 |
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| Banks to switch to real-time payments from Australia Day | Banks to switch to real-time payments from Australia Day |
| (about 1 month later) | |
| That annoying wait for a payment to transfer to or from your account will soon be a thing of the past, thanks to most banks moving to real-time payments from 26 January. | That annoying wait for a payment to transfer to or from your account will soon be a thing of the past, thanks to most banks moving to real-time payments from 26 January. |
| A group of 13 banks and financial institutions are collaborating on a new $1bn platform, run by a company called the New Payments Platform Australia (NPP Australia), which will enable much simpler, real-time transfers between accounts. | A group of 13 banks and financial institutions are collaborating on a new $1bn platform, run by a company called the New Payments Platform Australia (NPP Australia), which will enable much simpler, real-time transfers between accounts. |
| The full introduction of the new system is scheduled to start when people return from their summer holidays but in the meantime it will be road-tested by bank staff, who will be able to make real-time payments between each other and their bank. | The full introduction of the new system is scheduled to start when people return from their summer holidays but in the meantime it will be road-tested by bank staff, who will be able to make real-time payments between each other and their bank. |
| The main advantage for consumers will be that they will not need to wait for their money as they do now – sometimes for 24 hours. But it will also allow transfers using much simpler identifiers than a BSB and account number, such as a mobile phone number or email address. | The main advantage for consumers will be that they will not need to wait for their money as they do now – sometimes for 24 hours. But it will also allow transfers using much simpler identifiers than a BSB and account number, such as a mobile phone number or email address. |
| Customers will be able to set their own more memorable identifier that is attached to their bank account, thus avoiding the problem of payments going astray due to a mistyped account number. There will also be more scope to include longer messages with transfers, which are currently limited to 18 characters. | Customers will be able to set their own more memorable identifier that is attached to their bank account, thus avoiding the problem of payments going astray due to a mistyped account number. There will also be more scope to include longer messages with transfers, which are currently limited to 18 characters. |
| It is anticipated most Australian bank accounts will have access to the new system as soon as the platform launches. The project was triggered by the Reserve Bank’s 2012 review of Australia’s payment infrastructure, which noted that similar innovations were being introduced overseas. | It is anticipated most Australian bank accounts will have access to the new system as soon as the platform launches. The project was triggered by the Reserve Bank’s 2012 review of Australia’s payment infrastructure, which noted that similar innovations were being introduced overseas. |
| “The industry recognised the need for a plan that would support the future of payments. Already the Australian public has embraced electronic payment methods – chip cards (particularly contactless or “wave and pay” technology), BPAY, and new technologies such as smartphones,” NPPA chief executive, Adrian Lovney said. | “The industry recognised the need for a plan that would support the future of payments. Already the Australian public has embraced electronic payment methods – chip cards (particularly contactless or “wave and pay” technology), BPAY, and new technologies such as smartphones,” NPPA chief executive, Adrian Lovney said. |
| “But for this evolution to continue, our basic payments infrastructure needed an upgrade to enable a shift from batch or overnight account-based payments to immediate payments, and this could only be done with a whole of industry approach.” | “But for this evolution to continue, our basic payments infrastructure needed an upgrade to enable a shift from batch or overnight account-based payments to immediate payments, and this could only be done with a whole of industry approach.” |
| However, the introduction of real-time payments overseas has also led to an increase in fraud, prompting experts to warn that financial institutions would need to exercise increased vigilance. | However, the introduction of real-time payments overseas has also led to an increase in fraud, prompting experts to warn that financial institutions would need to exercise increased vigilance. |
| Lovney said the banks would need to put in place systems to track unusual transactions. | Lovney said the banks would need to put in place systems to track unusual transactions. |
| “With any new system that is introduced, you will see a spike in activity as people think about how they can take advantage of the change but banks will continue to put in place systems behind the scenes to try to protect customers from being tricked,” he said. | “With any new system that is introduced, you will see a spike in activity as people think about how they can take advantage of the change but banks will continue to put in place systems behind the scenes to try to protect customers from being tricked,” he said. |
| “While consumers and businesses can be reassured by the platform’s high levels of security, they will need to remain alert to the possibility of cons and scams that will continue to happen outside the platform’s control – like the recent spate of scams involving people impersonating the ATO, for instance ,” he said. | “While consumers and businesses can be reassured by the platform’s high levels of security, they will need to remain alert to the possibility of cons and scams that will continue to happen outside the platform’s control – like the recent spate of scams involving people impersonating the ATO, for instance ,” he said. |
| Tom Godfrey, head of media at Choice said the consumer organisation supported real-time payments. | Tom Godfrey, head of media at Choice said the consumer organisation supported real-time payments. |
| “Anecdotally, we’ve fielded plenty of complaints from consumers about direct deposits taking too long to process, as if the bank was waiting for a cheque to clear, Godfrey, said. | “Anecdotally, we’ve fielded plenty of complaints from consumers about direct deposits taking too long to process, as if the bank was waiting for a cheque to clear, Godfrey, said. |
| He said Choice had been reassured these transactions would be safe and secure and that banks would implement safeguards. | He said Choice had been reassured these transactions would be safe and secure and that banks would implement safeguards. |
| “Transactions will be settled through the “Fast Settlement Service” provided by the Reserve Bank, and we’re told the system has built-in security features that we have no reason to doubt at this early stage,” he added. | “Transactions will be settled through the “Fast Settlement Service” provided by the Reserve Bank, and we’re told the system has built-in security features that we have no reason to doubt at this early stage,” he added. |
| “ While financial institutions that connect to the NPP will be able to offer real time payments, we’ve been informed that there will also be ways to slow or stop these payments if fraud is detected.” | “ While financial institutions that connect to the NPP will be able to offer real time payments, we’ve been informed that there will also be ways to slow or stop these payments if fraud is detected.” |
| Banks will soon begin promoting the new system to customers. | Banks will soon begin promoting the new system to customers. |
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| Business (Australia) | Business (Australia) |
| Banking | Banking |
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