New Payments Platform - RegTech · Use Case #1 - AML and Sanctions Screening. The monitoring and...

New Payments Platform

CEO NEW PAYMENTS PLATFORMAUSTRALIA

Adrian Lovney

What is the New Payments Platform?

• World-class payments infrastructure to make fast, versatile and data-rich payments

New infrastructure separate from products

Open access platform

Confirmation of payee before payment

Real-time central bank settlement

“Request to Pay” functionality

Key Features:

• Simpler addressing

• Data rich capability with ability for data to be carried with the payment

• Real time movement of money, account to account

• Always available, 24x7, 365 days

Key Benefits:

Built on ISO message schema

© NPP Australia Limited

Australia’s New Payments Platform is world class

Required Features

Highly desired features enhancing customer value and innovation

• Interbank

• Account to Account

• <1min End-to-end

• Irrevocable

Optional features maximising customer value

• Universal Access

• ISO standards (20022 or 8583)

• 24x7 Availability

• Remittance Information• Alternative Identifier• Batch & Individual payments• Fast Settlement • Push and Pull Payment capability

Faster Payment Innovation Index

New Payments Platform

Innovation above and beyond simple fast payments

• Open access • API interface

Under Development

Copyright: FIS


How does the NPP work?

Distributed architecture via NPP Payment Gateways (PAGs)

Uses ISO 20022, global standard for electronic data interchange

Processing and routing of transactions between the PAGs and the RBA’s Fast Settlement Service

Overlay Services sit on top of the Basic Infrastructure offering different customer value propositions

Bank Channels

Payment Gateway

Payer

Addressing Service

NPP Participants (Financial

Institutions)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 Participants (Financial

Institutions)

Payee Settlement Notification

Settlement Request

Payment Gateway

Overlay Services


What is PayID?

How does it work?

• A customer registers a PayID and their ‘display name’ in the Addressing Service via their financial institution

• Registering financial institution responsible for effective, correct, authenticated registration

• Payer’s financial institution uses recorded data to create clearing message and displays payee name to payer for payment confirmation

• PayIDs can be moved easily between accounts and between financial institutions

What is it?

• Addressing service which enables NPP payment direction using an easy to remember alias (a PayID) linked to an underlying bank account

• Access controlled, secure repository of proxies and encrypted account details

• Four alias types at launch – phone, email, ABN and organisation identifier


What did the public launch look like?

More than 60 participating Financial Institutions (either directly or indirectly)

Critical mass in terms of account reach, with an initial focus on retail customer accounts

PayID available for registration by customers

Osko product launched

Financial institutions’ proprietary product and service offerings rolled out to consumer and business customers

Day 1


PayID registrations

0

200

400

600

800

1,000

1,200

1,400

1,600

13/0

2/18

15/0

2/18

17/0

2/18

19/0

2/18

21/0

2/18

23/0

2/18

25/0

2/18

27/0

2/18

1/03

/18

3/03

/18

5/03

/18

7/03

/18

9/03

/18

11/0

3/18

13/0

3/18

15/0

3/18

17/0

3/18

19/0

3/18

21/0

3/18

23/0

3/18

25/0

3/18

27/0

3/18

29/0

3/18

31/0

3/18

2/04

/18

4/04

/18

6/04

/18

8/04

/18

10/0

4/18

12/0

4/18

14/0

4/18

16/0

4/18

18/0

4/18

20/0

4/18

22/0

4/18

24/0

4/18

26/0

4/18

28/0

4/18

30/0

4/18

Volu

me

(‘000

s)Cumulative Registrations

Public launch2.5

months


First Overlay Service - Osko

Quicker moving money Flexible addressing More information

Confidence in Delivery Through your Financial Institution Make a request to be paid

Money received in less than 1 minute

No need to share account details when using PayID

More explanation with up to 280 characters

Osko will be in the majority of Financial Institutions’ mobile & Internet Banking platforms

PayID Name is displayed to confirm the intended recipient and customer can

receive immediate confirmation

Simple requests with up to 280 characters using PayID. Easily track and reconcile which payment requests have

been paid in part or in full

Day 1 Day 2

More informationPayment with a document or

link to externally hosted documents


Beyond P2P – MobilePay Case Study

Key Facts About MobilePay• Over 3.6 million users

• 55,000+ stores receive payment via MobilePay

• Online payments in more than 7,000 Danish online stores

• More than 214 million transactions per annum

MobilePay Product Offerings• P2P payments

• Online and AppSwitch (payments within apps)

• Point of Sale (POS terminal integration and mobile POS)

• Invoicing

• Payouts (B2C payments)

• Subscriptions (recurring payments)

Typical Faster Payments Product Evolution

P2P Online POS B2B


I want to…

User of the platform (using PayID or BSB / account details to receive payments)

1. Receive payments via the NPP

Are you an ADI/

planning on being an

ADI?

Yes

No

NPP Participant if want to be able to clear and settle on own behalf and provide access (significant technical effort)

Identified Institution if prefer to have directly connected Participant settle on your behalf (“light” touch)

Suggested access option

Connected Institution

2. Make payments via the NPP

User of the platform3. Send data with a payment

DoesOsko meet

your needs?

Yes

NoOverlay Service Provider4. Provide a different customer

experience to what is there currently

5. Provide access to others and/or submit payment initiation messages

6. Provide payment services to my customers


What is an Overlay Service?

Overlay Service Provider defines the message set and data content to be used and how the message flows will work

Service is offered to Participants and their customers

Once approved by NPPA, overlay service will be added to a closed user group with those Participants who choose to subscribe to the service

Overlay Service Provider manages ongoing governance and membership of service

Can be connected or non-connected to the Basic Infrastructure


Possible Future Overlay Services (Products)

E-Invoicing• Combine complex structured data with

payment

• Solutions could range from simple, mobile based solution to more complex ones using accounting software or ERP systems

Compliance • Deployment of new technology and

capabilities to enhance and supplement current compliance processes

• Could be in areas such as KYC, AML and cybersecurity

Payroll• Specific payroll product could incorporate data

fields explicitly tailored to the industry’s needs

• Payroll payments could be made real-time, 24x7 together with disbursements for tax or superannuation

Stock Markets• Faster payment of dividend payments, 24x7

• Streamlined and efficient corporate actions with electronic data capture, request for payment and no batch cut-off times


Fintechs & New Payments Platform Australia

25%

40%

43%

54%

62%

68%

Webinars

Technical workshop

"Connection" session(s)with banks/aggregators

NPP regular meetup

APIs

Demonstration/testingfacility

Source: NPPA Survey of fintechs – Sydney Start up Hub, Stone & Chalk and York Butter Factory Ventures, March 2018

What Fintechs tell us they are looking for

© NPP Aus tra lia Limited

Introducing #COLLABNPP

Use Case #1 - AML and Sanctions Screening

The monitoring and screening of domestic electronic account to account transaction (retail payments) is critical area of compliance activity and focus. Screening mechanisms in a real-time environment require smarter monitoring screening, reporting and systems.

Use Case #2 – Fraud and Scams

The very nature of fraud and scams means there will always be a need to refine, adapt and advance tools and capabilities to identify and respond to fraud and scams. This is particularly the case in a real-time environment.

• Collaboration between NPP Australia and RegTech to explore the potential for compliance related overlay services

• Structured market engagement over a three month period

• Will enable interested RegTech organisationsto learn more about the NPP and engage with some of the NPP participating financial institutions


#COLLABNPP – key dates

• Register your interest

• NPP Technical workshop

• Q&A call

• Submit your proposal

• Pitch your proposal

By 11th May

Week commencing 21 May

Week commencing 4 June

By Friday 22 June

Early July


Questions?

For more information, please contact the NPPA team on [email protected]


©2018 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.

mailto:[email protected]

New Payments Platform - RegTech · Use Case #1 - AML and Sanctions Screening. The monitoring and...

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