New Payments Platform Update · 2019. 6. 10. · Adrian Lovney. CEO, New Payments Platform...
Transcript of 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
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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?
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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
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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
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Focus on capability development
NPP ISO 20022 message usage
NPP QR Code Standard
NPP API Framework and Sandbox
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Payment initiation messages
Capability development: NPP ISO 20022 message usage
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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
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• 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
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Capability development: NPP API Framework v2.0
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• 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
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Capability development: payment initiation messages
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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
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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
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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
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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
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• 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
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• 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
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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