Osko and the New Payments Platform are designed to bring faster, easier, more convenient online bank transfers to Aussies, so that everything from paying your energy bill, to buying old IKEA desks off Gumtree is simpler. Osko is the first consumer-built product being released as a part of the New Payments Platform.
Osko is currently partnered with over 50 financial institutes including the big four banks, so more than likely you already have access to it. To be more jargony for a second, Osko uses ISO, which is a standard system for many international financial institutes using electronic data exchange. This just means it has the same backdoor processes and protections that you probably already use everyday. So you may be wondering, what exactly is different about Osko - I already have online banking?
Fair point, but there are a few main differences that really put Osko ahead of the old system. And as Osko and the NPP becomes more widely adopted, the usage possibilities will increase too. This lets you pay or be paid by your friends, family, colleagues, whoever right away, so the money can get there without the delay of online banking.
Ever been the one to pay for dinner and not receive payment from a member of the group? With no ATM around, Osko can fix the situation quick-smart. You rock up to their house, put them in your car and all you need to do is put their number into your phone and you can finish the transaction right there. As far as receiving money, when your customer makes the transaction, you get the money straight away, instead of having to wait a couple of days.
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Bank Account Fees and Charges. Types of bank account.The "new payments platform" has finally reached critical mass, with Westpac and ANZ rolling out access to customers after a six-month delay and triggering the launch of a national advertising campaign next week for the system's first application, Osko.
Osko, which has been built by the major bank-owned BPAY Group, launched in February when the NPP was turned on and by tapping the NPP's real-time clearing and data capability it provides instant account-to-account payments for the first time in Australia.
But these numbers are set to surge now all four of the majors have turned it on. Chief executive of BPAY Group, John Banfield: Osko is now operating inside the banking apps of more than 60 financial institutions and reaching over 42 million consumer and business accounts.
The chief executive of BPAY Group, John Banfield, said Osko, is now operating inside the banking apps of more than 60 financial institutions and reaching over 42 million consumer and business accounts.
This will begin on September 9 and include TV, outdoor, cinema and social media. The campaign comes as the banks attempt to restore public trust which has been tarnished by the revelations in the banking royal commission; through Osko, they plan to send a message around payments innovation. In March, there weretransactions going through Osko each day; this has jumped toa day in recent weeks. Come the end of the March next year, Mr Banfield said expect 1 million transactions a day and perhaps by the later part of next year volume could exceed the 1.
Osko lets customers send funds using BSB and account numbers or a PayID, which can be an email address or mobile phone number. Around 1. It is also being used for P2B payments, for example, for paying tradies. A new feature allowing payment requests to be made is in development. It is expected Osko will be the first of many "overlay services" to be created on the infrastructure, which has been designed to be open and inclusive. Any one of Australia's prudentially regulated ADIs, and holders of the new restricted ADI licences, can connect directly to the infrastructure, but fintechs and non-banks can connect via payments service providers such as CuscalAustralian Settlements Limited and Indue.
NPP Australia, the governing body, hopes the system will be used to facilitate real-time funding, new payments wallets, short-term lending, "buy-now, pay-later" offerings, the domestic legs of international remittance and new QR Code driven products.
It may also be used to enable payroll payments, move data, and conduct payments using distributed ledger or blockchain technology. The Productivity Commission in its recent report on competition in financial services called for a formal access regime to be established over the NPP to facilitate competition, but this has been rejected by the Reserve Bank's Payment System Boardand NPP Australia, which say more time is required to see how enhanced access and innovation plays out.
NPP Australia is planning on extending the capability of the system to support new payment types, including alternatives to the current direct debit system.
Skip to navigation Skip to content Skip to footer Help using this website - Accessibility statement. Companies Financial Services Print article. James Eyers Senior Reporter. Sep 2, — Open and inclusive Osko lets customers send funds using BSB and account numbers or a PayID, which can be an email address or mobile phone number. License article. Commonwealth Bank Unable to follow, try again. National Australia Bank Unable to follow, try again.
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Introducing Osko payments
Contractors ready to hire thousands if infrastructure funded.From October, bank customers will no longer need to worry about BSB and account numbers when transferring money to a friend, or paying a tradesman. Instead, they will only need to know the recipient's "PayID. NPP Australia chief executive Adrian Lovney is talking to industry players about other innovative payment services.
Credit: Ben Rushton. These brands are linked to the national payments platform, which is a project funded by banks to create real-time payments that are easier to use, and can allow much more information to be included in a payment.
But the NPP, as it is known in the industry, is not a consumer-facing brand that consumers are likely to hear about from their bank.
NPP Australia chief executive Adrian Lovney said the first thing consumers were likely to notice when the service goes live, expected in October, was their bank inviting them to register for a PayID. BSBs and bank accounts will still exist behind the scenes, but you will not need to use them. The other new financial brand consumers can expect to see from October is "Osko" — this is the name of the first service that will run on the NPP.
Osko, which is owned by BPay, will initially allow customers to make and receive instant payments, through their PayID. Currently, it can take up to three days for payments between banks to clear. In the not-too-distant future, Osko will also allow customers to request payments from others — such as a tradesmen sending through a bill — and it will allow for payments to be made with a statement attached.
BPay Group chief executive John Banfield said he hoped the word Osko, which was developed with an external firm and with input from the major banks, would eventually catch on in everyday language, as Google and Uber have.
That's really what we want to get to," Mr Banfield said. Osko will be available from 70 financial institutions from the day it goes live, including all of the major banks.
BPay, which is owned by the big four banks, won the bidding process to deliver the first "overlay service" on the NPP infrastructure, and Mr Banfield said Osko is part of an important strategic move for BPay. BPay's core product is a bill payment service, but that has been around for two decades.
The group is competing against a wave of finance technologies that are eyeing the banks' dominant position in the payments industry. Mr Banfield did not say how much the banks had spent on Osko, but said they had "invested heavily" in recent years to develop the service. While Osko is the first "overlay service" to be provided on the NPP, Mr Lovney said he was speaking to other businesses in finance and technology about other services that might be provided on the platform in the future.
BPay Group unveils 'Osko' brand for real-time payments.We are currently experiencing a high volume of calls as a result of COVID, but we are here to help.
Plus it's now easier to make near real-time payments to friends or family using their registered PayID, even if they bank elsewhere. You'll be able to include a longer message with the transaction. Your message will arrive with your payment. Best of all, this new feature is available in Internet banking and on the Mobile Banking App. A PayID is an easy way to communicate your account details to other people, by providing your mobile number. Include more information up to characters in your payment description.
All payments to a PayID will occur in near real-time. Payments to a BSB and account number will only occur in near real-time if both parties have eligible accounts. You will see the transaction appear as Osko in Online Banking when you make or receive an Osko payment. Find out more about Osko. A PayID can be your mobile number. It's like an easy to remember alternative for your BSB and account number. It's unique to you and your eligible bank account. It won't replace your BSB and account number which will stay exactly the same.
BSB and account numbers can still be used. PayID is just an alternative way to direct a payment to a bank account much more simply. After you've created a PayID using your mobile number and it's been activated, you can start giving your mobile number to people who need to pay you. It takes just minutes for your PayID to be activated. The funds will be directly deposited to the account you linked to your PayID.
Your PayID is a unique identifier which can only be linked to one eligible bank account. However, if you have more than one mobile number, each may be able to be created as a unique PayID. You will see the transaction appear as Osko when you make or receive an Osko Payment.
The New Payments Platform is a centralised platform that facilitates near real-time clearing and settlements of payments between 61 participating Australian financial institutions. Eligible accounts will be able to receive Osko Payments without any action from you.
For a full list of participating financial institutions and their services, visit www. If an account cannot accept faster payments, we will try to send the payment another way using the current payment channels. If the payment is made in near real-time, Osko or the Osko logo will appear next to the transaction in Online Banking.
When making a payment to a PayID, the PayID name will be displayed letting you verify the payee before confirming the payment. Ask these questions:. Until the transfer is completed Osko Payments to your PayID will be directed to your account with us. You can request us to transfer your PayID again at any time. Your PayID name will be your first and last name for personal customers.And what makes it a better way to pay?
The NPP is a new initiative developed by NPP Australia Ltd and several other financial institutions, with the goal of creating an entirely new infrastructure that better meets the needs of consumers. This will transform the way that Australians transfer money to one another, and it went live in February These services cover the many different ways that Australians send and receive money, but Osko does far more than simply provide an alternative to current transfer options.
Instead, it has rewritten the rules, and introduced innovative features that make paying easier, faster and better. The first, and perhaps most important, feature of Osko that makes it a better option for transferring money is speed. Current payment platforms can take 24 hours or longer for money to leave one account and arrive in another, but with Osko, that time is reduced to mere minutes. This eliminates the hassle of having to wait for money to come through, which can be a particular pain if you are not sure whether or not you have even been paid.
With Osko, the transfer is almost instant — all day, every day, even on the weekends and public holidays. There are more than 70 different financial institutions, including Beyond Bank, that offer the platform and are building it into their existing payment applications. For consumers, the change will be minimal.
Simply log in to your internet banking or banking app, and the new service will be available. Of course, safety is always important when dealing with payments, which is why Osko is fully backed by the banks that use it, as well as BPAY. The first of these involves PayID. Instead, payments can be made to something as simple and secure as a mobile number or email address. Finally, there are the little features — the ones that may not be central to making and receiving payments, but that make the whole process a little better.
For example, being able to include much longer descriptions up to characters will eliminate the need to spend time wondering how to convey all the information regarding a payment.
Meanwhile, the ability to include emojis allows for increased personalisation of transfers to friends and family. To create your PayID, simply log in to internet banking or the app — watch this short video on Creating your PayID for instructions on how to set it up.
Primary Navigation Home Money Expert. Kids learning to drive?In the shadows of the Hayne royal commission, three of the major banks launched Beem It last week.
It allows people to pay, receive and split payments, by linking to their debit cards. Beem It has been launched in Australia to allow real time peer-to-peer payments.
It is owned by three of the big four banks and will compete against the NPP's Osko. Marlene Awaad. Beem It's ownership its shareholders are Commonwealth Bank, National Australia Bank and Westpac Banking Corp has created a bit of a buzz in the local payments fraternity about what its strategy will ultimately be, and which other players will be impacted. The timing of Beem It's launch is intriguing, given the Reserve Bank-backed real-time payments platform, known as the new payments platform NPPwas turned on only in mid-February.
Beem It will directly compete with the first "overlay" service being offered on the NPP — a real-time, peer-to-peer payments service known as Osko.Get ready for the new way to pay - OSKO by BPAY and Greater Bank (6s)
The company is owned by BPay, which is also owned by the big four banks. However, the NPP uptake appears slower than what was initially expected. Westpac and ANZ haven't yet made the system widely available to customers.
And given Osko operates through an existing banking app, these aren't necessarily the 'go to' apps when customers think about making payments.
Josh Robenstone. Beem It plans to create a new peer-to-peer real-time payments brand that uses existing payments "rails", rather than the NPP. It uses the credit card network of Visa and Mastercard to pull money from a sender's account, and the Eftpos system to put funds into the recipient's account. It will be interesting to see, therefore, whether Beem It's arrival makes it even harder for Osko to scale.
If that's the case, it won't delight the Reserve Bank, which wants the NPP to facilitate competition for payments services. A second interesting aspect of Beem It is what it says about how the banks might play against Apple.
ANZ's decision to break ranks with the cozy oligopoly ruffled the feathers of CBA, NAB and Westpac, and also their customers, who can't use the their iPhones to make tap-and-go payments. This would at least allow CBA, NAB and Westpac customers to pay with iPhones - although snapping a QR code with a camera is not as smooth a payment experience as simply waving the phone near a contactless terminal.
Skip to navigation Skip to content Skip to footer Help using this website - Accessibility statement. Technology Print article. James Eyers Senior Reporter. Updated Jun 4, — 5. Josh Robenstone Beem It plans to create a new peer-to-peer real-time payments brand that uses existing payments "rails", rather than the NPP. License article.We are currently experiencing a high volume of calls as a result of COVID, but we are here to help.
You'll receive a message in Internet Banking saying that fast payments are here with Osko. If the payment is made in near real-time, Osko or the Osko logo will appear next to the transaction in Internet Banking.
Overseas and off shore bank accounts are not. To make an Osko payment to a BSB and account number, the payee needs to have an eligible Osko account at a participating financial institution.
The payment can neither be future dated nor recurring. How to create a PayID. You should only pay people or businesses you know. Both the sending and receiving bank accounts must be enabled for faster Osko payments.
Fast Osko payments will not be available on some STG accounts including credit accountsto offshore bank accounts or for transfers in a foreign currency.
Big banks turn on Osko as the 'new payments platform' rolls out
Payments may take longer in some instances, such as where there is a technical interruption to the service, there is a payment to a first time payee or when the payment is caught for additional security screening.
Print this page Email. Introducing Osko payments. How will I know if I have it? Who can I make near real-time payments to? How to create a PayID Are near real-time payments safe? Will BankSA credit card repayments be made in near real-time?