Australians are missing out on the ease of a simplified banking initiative that includes instant payment transfers, QR codes and no more BSB and account numbers.
BPAY’s latest venture Osko, facilitates the instant transferring of funds between banks 24 hours a day, seven days a week. However, only 20 per cent of banking customers have used it according to the latest study by JD Power.
JD Power’s ‘The Australia Retail Banking Satisfaction Study’ reveals that 61 per cent of Australians have no awareness of Osko at all.
Keith Brown general manager, product, scheme and business development at BPAY disagrees and says the take-up is much higher than this.
Brown says: “We are at a point now where we are getting on average a million payments, totalling $1 billion a day going through Osko.”
One of the reasons that awareness and usage can seem lower is that customers do not always actively know they are making an Osko payment.
Brown says: “When paying to a PayID is obviously through Osko but if they are paying to a BSB and account number, that payment is likely to go through Osko.”
PayID is an identifier like an email or phone number linked to your bank account to send and receive payments without the hassle of needing to remember a BSB and account number.
BPAY’s Osko service is an overlay on the New Payments Platform that facilitates the technology and all the benefits and functions of PayID.
Further enhancements to the online payments system are on the way. The NPP released a QR code standard for use on the NPP and Osko will be launching this functionality in the new year, similar to the existing Alipay and WeChat Pay in China.
Brown says: “This will allow people who are holding market stalls or garage sales a simple way to get a real time payment. They can generate a QR code on the fly, the customer can scan it from their mobile and a real time payment coming in.”
Like BPAY biller codes, once the PayID has been entered the name of the person is displayed. This is something that does not occur when entering BSB and account number.
Brown says: “I think that’s a real benefit when you’re paying someone that you haven’t paid before, this validates that the details are correct.”
Apart from the ease of just using a phone number to make payments, the value of PayID lies in its ability to transfer money instantly between accounts at different financial institutions 365 days a year, and detail payments through a 280 character description attached to it.
Today approximately 70 banks and financial institutions use Osko, including neobanks Up and 86 400.
Brown says: “You can make an Osko payment to any of the major banks and receive an Osko payment from any of the major banks.”