From today, local banks will commence roll-out of out a new payment platform, set to offer ‘instantaneous’ transfers, 24 hours a day, seven days a week.

Reportedly in development for four years, the project comes from the New Payments Platform (NPP) whose shareholders include several major banks and the RBA. Roll out is valued at about $1 billion.

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The RBA states sixty banks, credit unions and building societies will commence their rollout from today, expanding into the coming months.

Launched by the RBA, the new platform includes “PayID”, which features customisable easy-to-remember ID verification (e.g. mobile number), in lieu of recalling an account number.

As reported to The Australian, NPP Chief Executive, Adrian Lovney claims:

“The new platform will allow payments to be made in real time, 24 hours a day, seven days a week, 365 days a year”.

Lovney affirms the new payment platform is not designed for traditional bill payments, rather those who require instant payments – e.g. sellers on Gumtree or eBay.

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Small businesses are also tipped to benefit, as they typically experience the burden of delayed payments.

Lovney states transfers could take as little as seconds, and will also assist those who conduct operations outside of standard business hours.

Ultimately, NPP asserts it is up to individual banks to determine their approach to rollout.

Following an RBA review in 2012, the NPP was established a year later, and reportedly involves an initial group of thirteen shareholders including; ANZ, nab, Macquarie Bank, Westpac, Commonwealth Bank, ING Direct,  HSBC Australia, Citigroup, Bendigo and Adelaide Bank.

Watch Westpac Bank’s Managing Director of Payments, Philip Joyce, discuss the impact of NPP and the bank’s rollout of the platform below:

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