NPP Australia connects Paypa Plane

By on
NPP Australia connects Paypa Plane

Rollout accelerated.

Paypa Plane has won direct access to the New Payments Platform Australia, to accelerate its rollout.

Paypa Plane, which CBA a 20 percent stake in, already uses the NPPA’s PayTo capability, which is described in documentation as "a new, digital way for merchants and businesses to initiate real-time payments from their customers’ bank accounts."

With approval from the NPPA management and the AP+ Governance Committee to become a connected institution, Paypa Plane can opt to connect directly to the NPPA via a gateway in their own environment, and initiate payments with participating financial institutions.

Acting CEO of NPP Australia Katrina Stuart told iTnews “the connected institution pathway gives direct access to the NPP’s capabilities to organisations wanting to initiate payments from customer’s bank accounts.”

“This means they can connect directly to the NPP to send instructions for payments to be made which are cleared and settled by NPP Participants, who remain the holders of funds,” Stuart said.

“As connected institutions are not involved in the actual movement of money, they are not required to be an Authorised Deposit-taking Institution (ADI) or Restricted ADI."

Stuart added becoming a connected institution is an excellent option for payments service providers like Paypa Plane, positioning themselves to offer PayTo when it starts rolling out from mid-2022.

“This is because it gives them the ability to drive innovation in the market, without having to meet the regulatory burden associated with directly clearing or processing payments.

“NPP Australia benefits from having connected institutions because not only can they incorporate the capabilities of the NPP into their own payment product and service offering, but they can also provide other businesses and organisations with more options in how they might access the capabilities of the NPP.  

“This also delivers obvious benefits to businesses and consumers looking for more innovative ways of receiving or making real-time one-off or recurring payments directly from their bank account.”

CEO and founder of Paypa Plane Simone Joyce told iTnews “connecting with the NPP will accelerate our bank-grade platform’s offering to help banks meet the needs of SMEs in real-time.”

“We are looking forward to helping to accelerate the development of the PayTo ecosystem in Australia.

“PayTo is an essential lift in functionality taking us one step closer to the fast data-rich financial systems of the future and through connecting to the NPP we are able to help banks to rapidly evolve their product offering”.

Got a news tip for our journalists? Share it with us anonymously here.
Copyright © . All rights reserved.

Most Read Articles

Log In

  |  Forgot your password?