new payments platform australia and absia webinar€¦ · • npp api framework v2.0 currently...

Marnie RyanSenior Manager, Engagement, New Payments Platform Australia

New Payments Platform Australia and ABSIA

Webinar

29 March 2019

Agenda

© NPP Australia Limited

• About the NPP

• What’s next for NPP?

• Q&A discussion

New Payments Platform key capabilities


• 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?


• 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


• 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


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

Who’s involved? 75+ organisations


Recent use case


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

https://www.itnews.com.au/news/centrelink-deploys-npp-for-real-time-emergency-payments-520104?eid=1&edate=20190305&utm_source=20190305_AM&utm_medium=newsletter&utm_campaign=daily_newsletter

What’s next for NPP?

Focus on capability development


NPP API Framework and API Sandbox NPP ISO message usage guidelines

QR code standards

Role of NPP APIs


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


• 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

http://www.nppa.com.au/

NPP ISO 20022 messages


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


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


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


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]

new payments platform australia and absia webinar€¦ · • npp api framework v2.0 currently...

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