A friend was telling me recently that the Electronic Funds Transfer (EFT) system that we currently know is about to get an overhaul, and there could be plenty of benefits for individuals and businesses alike. What can you tell me about the system and how might it be of benefit to me and my business?
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
The EFT system has been around for decades, and while it has its shortcomings, many of us have assumed that it didn’t seem broken and therefore wouldn’t be fixed any time soon.
Fortunately, the Australian financial services industry has been challenging the status quo on this issue for some time, and that’s where the New Payments Platform (NPP) comes in.
The NPP is a collaboration between 13 of Australia’s leading financial institutions, and will bring a number of enhancements to payment processing systems that should make Australia a leader in this area.
Some of the features of the NPP include:
- Real time payment processing 24/7, which means no more waiting for funds to clear.
- Data can be attached to payments, including text files or external links, which could remove the need to send a separate email remittance.
- The ability to use an email address or mobile telephone number instead of an account number. This would bring the added benefit of allowing you to update the bank account details linked to your email address or mobile telephone number at any point without needing to notify your customers of your new payment details.
- The NPP also allows developers to produce innovative products that can build on the NPP’s core functionality.
The NPP is due to go live in late 2017, which will allow the majority of Australian bank accounts to use the system. Other financial institutions can then connect to the NPP via one of the 13 initial participants, which should then make the system available to all Australians.
For information on the NPP and how it could benefit you and your business, contact your Crowe Horwath adviser on albury@crowehorwath.com.au.
(NPP) will bring a number of enhancements to payment processing systems that should make Australia a leader in this area.
