new payments platform update · 2019. 6. 10. · adrian lovney. ceo, new payments platform...

Adrian LovneyCEO, New Payments Platform Australia Limited

New Payments Platform Update

2nd Annual Real-Time Payments Summit

14 June 2019

© NPP Australia Limited

Number of registered PayIDs

3.03 million+

Accounts can make and receive NPP payments

55 million+ 500,000+Daily NPP transactions

Total cumulative value of NPP payments since launch

$120 Bn+

Largest single transaction across the NPP

$17 million

150 million+Transactions sent across the Platform

80Participating Financial Institutions

Growth in monthly transaction volumes

Double digit

As at 3 June 2019

Who’s involved?


Recent use cases

Australian Government’s Centrelink deploys NPP for real time emergency payments

• Instantly distribute emergency assistance including Disaster Recovery payments following recent floods and bushfires

Carsales first to put goods on NPP

• Online car yard Carsales.com.au became the first non-financial business to use the NPP. Once a car sale is agreed, payment is made to the seller in seconds, 24/7


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

https://www.afr.com/technology/carsales-first-to-put-goods-on-new-payment-platform-20180928-h15zlx

Recent use cases

• Employees can request an advance on pay that they have already earned

• Borrowed funds are provided by Earnd and on payday, the loan balance is taken out of the employee’s earnings and paid back to Earnd

• Using the NPP for payments out to employees

• Create new products and services using blockchain technology and utilising the NPP for real-time payments

• Opportunity to automate actions that would normally be conducted manually

• One example is MyStake, platform which tokenises unlisted shares and enables existing shareholders to trade with each other

• Legal ownership of shares transferred at the same time as monies move between bank accounts in real-time


Focus on capability development

NPP ISO 20022 message usage

NPP QR Code Standard

NPP API Framework and Sandbox


Payment initiation messages

Capability development: NPP ISO 20022 message usage


PayrollSuperannuation PAYG Tax

• Use of structured data fields within ISO 20022 messages

• Ensures uniform approach to data and consistent 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

• Future work will focus on einvoicing and insurance

Capability development: NPP QR Code Standards


• Based on EMVCo QR Code specifications

• Defines mandatory elements required to ensure consistency of NPP payment

• For static and dynamic QR codes

• Intended to be able to be used for bill payment, invoices, e-commerce and at a later stage, POS terminals

• Published May 30th

Role of APIs critical to expanding use

• 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 standardisation and interoperability with the launch of the NPP API Framework

• APIs made available by NPP Participants

Corporate

NPP Payment Gateway

NPP Participant

API

API

API

Fintech

Merchant


Capability development: NPP API Framework v2.0


• Version 2.0 published in May

• Additional APIs include:o Cancel Paymento Return Payment o Send notifications upon a

payment and payment return• Framework defines message

structure, usage and JSON schema for each of the sample APIs

• Framework will continue to be expanded over time, e.g. in linewith messaging usage work

Version 1.0Published Sept 2018

Version 2.0Published May 2019

NPP Payment Initiation APIs

API [Get Payment Status]

pain.a10

NPP PayIDAPIs

API [Get Account Servicer by Alias]

pain.a11

NPP Payment Status APIs

API [Submit Payment]pain.a09

NPP Payment

CancelationRequest APIs

NPP Payment Notification APIs API [Payment Event

Notification]camt.a12

API [Payment Event Details]

camt.a11

API [Cancel Payment]camt.a09

API [Return Payment]camt.a10

NPP Payment Initiation APIs

API [Get Payment Status]

pain.a10

NPP PayIDAPIs

API [Get Account Servicer by Alias]

pain.a11

NPP Payment Status APIs

API [Submit Payment]pain.a09

Capability development: NPP API Sandbox

• Launched in December 2018

• Enables third parties to learn more about the NPP and test different scenarios

• Secure, cloud based facility

• Will continue to evolve over time with new API versions

• Currently 50+ users


Capability development: payment initiation messages


Payment Initiation Authorisation Clearing Settlement Post-Payment

Fulfillment

• Payment initiation (PAIN) messages are an existing capability within NPP which have been built, but not yet certified or tested

• By using PAIN messages, payments can be initiated by creditors and also parties ‘on-behalf-of’ the debtor, thereby opening up the NPP ecosystem to a range of third parties (in a controlled way) and enabling additional utility of the platform

• Requires authorisation by the account holder prior to clearing message creation

• NPPA is working on the development of native payment initiation capabilities to support a broad range of use cases


Participant Satisfaction survey action plan Coming soon: Inbound cross border payments

• NPP infrastructure upgraded to support domestic leg of an inbound cross-border payment (IFTIs)

• Established as a service that NPP participating financial institutions can choose to opt-in to

• Cross-border services such as SWIFT gpicould sit on top

Real-time payment markets going global


We will continue to see various international money transfer solutions interacting with domestic real-time payment systems to enable real-time cross-border payments

Domestic real-time payments systems

Various international money transfer solutions

NPP capabilities in an Open Banking era


Graduated access regime with multiple access options

Payment messages initiated by third parties with account holder’s explicit authorisation

API Framework to drive standardisation

Payment initiation messages

Real-time payments overseas


• NPPA recently developed a white paper that analyses what’s happening in other real-time payments markets

• Key findings:

‒ ‘Request for payment’

‒ Corporate real-time payments

‒ Use of QR codes

‒ Enhanced data

‒ Certainty of payment

‒ Open banking and APIs

RBA Consultation on NPP Access & Functionality


• Thoughtful and comprehensive analysis of multiple stakeholder views

• NPP adoption is growing at least as fast as other systems worldwide, but remains a work-in-progress

• RBA notes NPPA’s ambitious agenda to build further native capability

‒ Data and message usage guidelines; payment initiation; consent and mandate service - available for broad usage by third parties

‒ RBA agrees that this will enable more organisations to use the NPP for a broader range of purposes

• RBA wants to see more progress on rollout of functionality – seeks regular publication of a roadmap and calls for a mandatory compliance framework to help drive network effect

• NPPA believes it has fair and transparent processes in place to deal with access applications, but will further consider adding additional safeguards such as those suggested

• Similarly, NPPA is currently considering new shareholder contributions after the end of the current “joining period”, including reviewing eligibility criteria for new participants

• Ultimately seeking to strike a balance between open access and the security of real time payments infrastructure

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 accessto 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

Questions?

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

new payments platform update · 2019. 6. 10. · adrian lovney. ceo, new payments platform...

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