The roll out of the New Payments Platform earlier this year is “just the start” of Australia’s payment future, with business leaders and accountants told to expect changes from eInvoicing to payroll payments.
Speaking at MYOB Partner Connect 2018 in Melbourne, NPP Australia chief executive, Adrian Lovney said the new platform has now reached critical mass, with 51 million accounts now connected, up from 35 million accounts when it first rolled out in February.
The National Payments Platform (NPP) is a payments infrastructure that allows real-time and simpler transactions, with the initial launch targeted towards the banks’ retail customer base before rolling out to business customers.
“The direct entry system is a great system, it works well, it is cheap, it is functional and it has done its job for the last 40 years but it is not the system that Australia needs to move through another 40 years of innovation in the payments industry and accounting and bookkeeping industry,” said Mr Lovney.
With Mr Lovney targeting 55 million accounts by Christmas, he believes accountants and their clients will start seeing an evolution of payments as more services get released.
“There are now more than 70 organisations live on the new payments platform and the last of the big banks, Westpac, is part way through their rollout,” said Mr Lovney.
“We’re working with the tax office and organisations like MYOB to think about developing standards for different sorts of payments, for superannuation payments, for payroll and particularly for Single Touch Payroll.
“We also think the NPP will be used by the insurance industry, both the receiving premiums but also for making fast payments so the ability to receive a claim online, assess it and make a decision and make a payout to a customer's bank account is a real practical example of how, with digital technology and with a faster payments system, you can make more customers happier more quickly.”
The NPP was rolled out in February this year, and was lauded by then Treasurer Scott Morrison as enabling people and businesses to “transfer money to each other instantly, 24/7, on any day of the week, including weekends and public holidays”.
“Australians will no longer have to wait for bank transfers and payments to arrive in their account,” he said at the time.
Adam Zuchetti is the editor of My Business, and has steered the publication’s editorial direction since early 2016.