Here’s how the NPP’s about to change the way you pay

Sending (and more importantly, receiving) money is about to get a whole lot easier in 2018. The days of waiting what feels like an eternity to receive that rent money from your roomie will be a thing of the past. Or what about sending money to a mate to cover your share of the bar tab? You can soon do this without the tedious task of typing out their BSB and account number. 

This is because of a little something called the New Payments Platform (otherwise known as the NPP). Set to kick off on the day after Australia Day next year, it’s about to be a game changer. 

What is the New Payments Platform?

The New Payments Platform (or NPP) is a new payments infrastructure that will launch in Australia in January 2018. In a nutshell, the NPP will offer Aussies faster, more flexible and data-rich payments. The project is currently under the wing of some of the bigwigs in the banking industry, including NPP Australia Ltd, the RBA and 13 financial institution including Citigroup and the Big Four Banks.

How will the NPP impact you?

The NPP will allow you to send and receive real-time payments. So if you’re splitting a restaurant bill with a friend and they send you the money via a bank linked with the NPP, you can expect it in your account straight away.

It’ll also be easier to send payments in Australia. Rather than exchanging long BSBs and account numbers, you can pay someone just by using a new PayID such as their phone number or email address.

The NPP will also offer data-rich payments, which basically just means you’ll be able to attach longer descriptions to your payments. So rather than having to resort to cryptic acronyms and abbreviations, you can describe your transaction with as much detail as you need.


Once the NPP goes live, BPAY will combine a bunch of these features with the launch of its Osko platform. You’ll be able to use it to pay bills in real time, send a 280-character description with each transfer and identify payees by their email address or phone number. CBA, Westpac and NAB have also started collaborating on a new app called Beem, which cardholders can use to make instant payments no matter who they bank with.

Unfortunately, the benefits of the NPP won’t be available to everyone at the time of launch. If you’re banking with one of the 13 participating card issuers, you should be able to take advantage of the real-time payments straight away. If not, you’ll just have to wait patiently until your bank catches up.

You can check out finder’s guide to the NPP to see if your bank has jumped on the NPP bandwagon yet.

Is the NPP safe?

If you’re worried about the security of your NPP-enabled payments, don’t be. Your money will be protected by your bank’s usual fraud detection mechanisms and processes. The NPP will also have a payee-validation function, so you’ll be able to see the information of the person or organisation you’re sending money to before you make a transaction.

So now that you know what the NPP is, you can start looking forward to faster and easier digital payments in just a matter of months!