If there’s one thing that’s annoyed me over the years is banking delays and it’s always given me a sneaking suspicion that someone, somewhere, is making interest off holding my money in some invisible payment platform.
Thankfully this week we got word of a new system which gives individuals and employers the ability to transfer funds instantly.
For many Australians, the New Payment Platform (NPP) means being able to transfer funds to a loved one quicker and most importantly being able to receive your wages a lot sooner.
“Gone are the days of waiting one, two, sometimes even three days for your pay check to clear. It will now go straight from your employer’s account to yours, in less than 60 seconds,” says RateCity money editor Sally Tindall.
“The platform also allows people to include transaction descriptions of up to 280 characters, with the added artillery of emojis, for anyone who felt cramped by their bank’s merciless word limits,” she said.
However, various media reports have also warned that the NPP could be open to scammers and that it’s overall success will depend on how many banks come on board.
So far, the Commonwealth Bank, Westpac and National Australia Bank have started transfers via the platform but ANZ who are also signed up to the platform, will take more time before their systems are ready.
“There’s no point signing up to PayID if the person you want to transfer money to can’t receive the money because their bank isn’t playing ball,” says Ms Tindall.
“The entire banking community needs to take part in this new system for it to be a success.
“At present, there are over 60 banks signed up, however, a number of them are not ready to roll out the service and there are still some notable organisations missing.
“Consumers should also check with their financial institution to see if there are any costs associated with using the platform.
“It’s up to individual banks to decide how much they will charge for using the service. Let’s hope this is one area of banking where they put customers ahead of profits.
“While the banking sector should be congratulated for pulling this off, it really is the start in a game of catch ups. The UK have been transferring money in real time for 10 years now, and here we are, just starting to sit at the grown up’s table,’” said Ms Tindall.
Banks set to join the platform
|ANZ||Bank Australia||CUA||G&C Mutual Bank||The Mac||P&N Bank||SCU|
|Australian Unity||Bank First||Customs Bank||Gloubourn Murray Credit Union||Move||Police Bank||Security Credit Union|
|Bendigo Bank||CBA||Defence Bank||Greater Bank||The Mutual||Police Credit Union||SouthWest Credit|
|Bankstown City Unity Bank||Citi Bank||Dnister||HSBC||My State||Q Bank||SWSCU|
|BankVic||The Capricornian||Easystreet Financial||Hertitage Bank||NAB||Queensland Country Credit Union||Teachers Mutual Bank|
|Bankwest||Central Murray Credit Union||Endeavour Mutual Bank||Hume Bank||Newcastle Permanent||Reserve Bank of Australia||UniBank|
|BCU||Coastline Catalyst Money||Family First||ING||Nexus Mutual||RACQ Bank||Unity Bank|
|Bank of Us||Community First Credit Union||Firefighters Mutual Bank||Illawarra Credit Union||Northern Inland Credit Union||Regional Australia Bank||Westpac|
|Big Sky||Comtax Credit Union||First Option Credit Union||IMB Bank||Orange Credit Union||Reliance Bank||Warwick Credit Union|
|Beyond Bank||Credit Union SA||FCCS||LLL Finance||People’s Choice Credit Union||The Rock||WAW|