It was on Mother’s Day that my mother reminded me of the $250 I still owed her. I can honestly say, I had totally forgotten. Of all days. So, I decided to settle the debt. I mean, it was the least I could do, considering it was Mother’s Day. She told me not to stress, the closet ATM was at least a 15-minute drive away. I laughed and said “No one uses cash these days, I’ll transfer it to you. Simple.” Her response was “I don’t want to wait for 5 days for the cash to clear.” I laughed. Five days? I then asked for her phone and registered her mobile number as her pay ID. I transferred the money and within a few seconds it was sitting in her account. Presto. She was amazed and a little overwhelmed at the speed and efficiency and at how simple the entire process was. The rest of the conversation was about how she could now use this technology to help in her own business.
It is rare these days for people to carry cash, all transactions are conducted electronically or through tap and go (pay pass) for the simplicity of our lives. My friends and I make use of internet banking by paying each other instead of meeting up and exchanging cash or going into the bank and making deposits. Although internet banking has simplified our lives, there is still the burden of obtaining each other’s payment details like the BSB and account number. While this is convenient, there is still the risk of transferring money to the wrong person. For example entering incorrect payment details. Finally, we all can say goodbye to painful payment delays and obtaining payment details.
The New Payments Platform (NPP) introduced by banks will allow my friends and I to send and receive money 24 hours, 7 days a week regardless of weekends, public holidays and whom we bank with. This new innovative payment service is called Osko by BPAY, the benefits include:
- Faster payments: Giving customers and businesses the ability to transfer money to other financial institutions who have Osko in minutes.
- Simpler Payments: Forget your BSB and account number, just provide your mobile number or email address to get aid to.
- Smarter Payments: Personalise payment messages with up to 280 characters, including emoji’s.
- Safe and secure Payments: It’s backed by BPAY and you will receive confirmation your payment is going to the right person.
In order to make payments using Osko we need to create a pay ID, this can be our mobile numbers, email, ABN, or even landline phone numbers depending on our bank. Once a pay ID is created we will have the option to choose an account we want linked so money can be drawn. Payments are made when we enter the Pay ID and once the recipient’s name pop ups, we then confirm the payment and hit the send button, money is then transferred in “real time” and the person whom we’re paying gets the money instantly. We all want to make faster payments without the hassle of cash, this method has come in handy at times when I’ve had to split a late-night cab fare or when I’m at a restaurant which ‘doesn’t do’ splits bills, therefore I’ve been able to pay without the trouble of waiting for the money to clear. Banks are slowly moving away from BSB and account numbers as it can be a tedious and want to make our live more stress free.
Organisations which adopted this payment service are:
- NPPA (New Payments Platform Australia)
- RBA FFS (Fast settlement services)
Internationally there are payment platforms which works exactly like Osko such as PayPal which people primarily use for online shopping. I remember using EBay first time when I was 18, online shopping had just hit the market, and everybody was sceptical about providing their credit card details over the internet. I was buying a digital camera with my mum’s credit card and PayPal was the avenue to protect my payments. My mother was losing her mind about online fraud and I told her “mum, your payments are going through PayPal which are verified and protected from online scammers.” Funny enough now, there are parcels being sent to our house every week as she loves online shopping. Given the high reputation that PayPal for upholding credit card security, it also allows us to transfer money to friends and family with emails addresses or mobile numbers. Everyone whose used EBay can rely on PayPal’s security measures plus there are no sign up fee.
Technology has also advanced where Apple and Samsung pay has become a trend in the market to make payments more efficiently, my banking details can be stored on my phone and I simply tap onto the EFTPOS terminals to make payments without having the need to carry my wallet or bank cards. Apple Pay also allows the option to transfer money to friends and family using your debit and credit cards stored, you authorise the payment with Touch ID and your contact will receive the money in their Apple Pay Cash Account. In conjunction, Samsung Pay works exactly the same where it uses a “Samsung Wallet” which stores all your card details where you can also send money to friends and family who have the feature set up on their phone. I remember it my dad’s birthday and my brother and I were out shopping to find him a gift the night before, we decided to buy him a new phone which was valued at $950. Coincidentally, I had forgotten my wallet at home and luckily my brother had driven us, I told him to cover the cost and I would transfer the money to him instantly. Luckily, we both had Samsung phones so I just held my phone next to his and the money was transferred him instantly.
Third party platforms like AliPay that are based in China, operate as an online medium for us to shop, pay bills and book holidays. They function differently by working in favour with the buyer online to ensure their items are genuine before releasing the money held onto the seller. Just like PayPal their vision aims to minimise online fraud as compared to providing faster and easier transactions.
Merchants have also come up with clever innovations for customers to shop online more effectively by using third party platforms such as Afterpay and Splitit. Afterpay goes by the slogan of “Shop now. Enjoy Now. Pay later” where you pay for your purchases over four equal instalments every fortnight. I remember I bought a 10LBS bag of protein powder which was $200, I didn’t have the money as I was waiting for payday, thank god the store offered Afterpay, so therefore I paid $50 every fortnight, how convenient is that.
This is works in favour of the merchant and buyer and is a good way to increase sales and encourage spending. Splitit is an international payment platform with slogan of “If you Split it they will buy” which works very similar to Afterpay but the customer has the option to choose how many instalments they want to make as compared to four instalments. Both these platforms have a very clever way to boosting the economy through encouraging GDP (Gross Domestic Product) and increasing their profits.
The New Payments Platform (NCC) introduced by banks will work favourably for us as we won’t need to collect BSB and account numbers and have the risk of sending money to the wrong person. On the other hand, payments can be made with our Pay ID’s which is used to match our payee’s. Additionally, funds will can be wired instantly ‘real time’ without waiting for weekends, public holidays or being a third-party bank for money to clear. In conjunction, my parents who weren’t brought up with technology can also make payments to friends and family without driving 15 minutes to the nearest ATM or waiting 5 business days for funds to clear, this way they can stay up to date with technology and have their lives simplified.