Q: This morning I opened my banking app and it asked me if I wanted to set up a PayID. Why should I do this?
A: PayID is an identifier linked to your bank account to send and receive payments without the hassle of needing to remember a BSB and account number.
Instead, you can register for PayID in your participating financial institution with information that is linked to your nominated bank account such as phone number, email or ABN. Your PayID will be unique to you and your bank account.
PayID is a feature of the New Payments Platform (NPP) which was launched last year. The NPP is infrastructure that allows consumers, businesses and government agencies to make instant payments between accounts at participating financial institutions.
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.
BPAY’s Osko service is an overlay on the NPP that facilitates the technology and all the benefits and functions of PayID. When users send payments through Osko to a PayID, funds settle in real-time with close to immediate funds availability, regardless of financial service provider.
Osko and PayID work hand in hand. However, you can still use a BSB and account number to make payments through Osko.
According to PayID’s website: “Some financial institutions may require you to choose Osko if you wish to pay a PayID. In other financial institutions, the ability to pay to a PayID automatically appears as an option within your usual banking.”
Check if your bank is on the NPP through Osko here.