Three major banks in Australia have rolled out the country’s New Payments Platform (NPP), a billion-dollar instant payments system in the works since 2012.

Commonwealth Bank, Westpac and National Australia Bank are the first to take on the platform, which promises users that transfers can be made in less than a minute, as opposed to the three days older systems needed.

ANZ Bank, the odd one out, has said that it will not be launching with the system right away, after “rigorous testing” performed to make sure that customers were given the “best possible” and “safest” experience.

Related: NAB plans 4,000 job cull to fund automation

Bank State Branch numbers and account numbers will still be in use, but customers and businesses can now create “PayID” identifiers. PayID accepts email addresses or mobile numbers as identification, both to send and receive payments.

The UK’s Faster Payments scheme is a reliable case study for the potential effectiveness of NPP. It took Faster Payments two years to surpass 500 million transactions, but after seven years it had processed five billion.

Faster Payments, despite its increasing popularity, is not the main payment method. The Clearing House Automated Payment System (CHAPS), remains the most widely used.

by Alex Hamilton
Alex is Senior Reporter at IBS Intelligence, follow him on Twitter or contact him at: alexanderh@ibsintelligence.com
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