Participating FIs are required to join the international payments business service and receive inbound international payments via the NPP by December 2022.
NPP Australia has published a new roadmap outlining its plans to enhance and extend the capabilities of the NPP (New Payments Platform), a real-time payments system launched in 2018.
NPP Australia updates and publishes such a roadmap every six months, based on the future needs of users of the wider payments ecosystem as well as participating financial institutions.
The latest roadmap provides an update on the platform’s uptake, indicating that almost all retail transaction bank accounts are now enabled for NPP payments. The NPP now processes an average 1.7 million transactions a day. More than 20 percent of all account to account credit transfers are also now being processed across the NPP.
There are also more than 5.4 million registered PayIDs, up 36 percent since the start of the year, NPP Australia says. PayID allows customers to link their bank accounts to a phone number or email address, instead of providing bank account numbers to receive payments via the NPP.
The NPP roadmap includes an update on enabling international payments via the NPP. The currently-optional service enables Australian banks and international payment service providers to send international payments to an ultimate beneficiary or customer over the NPP as the final leg of an international payment coming into Australia.
The data richness of NPP payment messages – enabled by ISO 20022 – means information such as the full legal account name of the sender and additional identifiers such as date of birth can be carried from the country of origination all the way through to the receiving bank in Australia. This allows the receiving bank to perform necessary due diligence and screening to meet their regulatory obligations and mitigate financial crime risk.
NPP Australia expects some financial institutions will join the international payments business service over the next 12 months, once they have completed the additional back office work required to enable payments screening.
However, it will become mandatory for all NPP participating financial institutions to join the international payments business service and receive inbound international payments via the NPP by December 2022.
This timing was chosen to allow NPP participating financial institutions time to complete the technical and back office work required to support real-time international payments, as well as to align with the planned migration of the HVCS (High Value Clearing Stream) to ISO 20022, scheduled for end-2022.
As intermediate steps to enabling NPP-based cross-border payments, financial institutions must be able to deliver data-rich ISO 20022 message standards by April 2021, and to enable third-party payment initiation by end-2021.
The new NPP roadmap is available here.