Before we get into the juicy stuff about why PayID is about to make your life a whole lot easier, it would probably be a good idea to start with what PayID is.
Well, if you ask the fish – yes, there’s a talking fish – he’ll tell you it has been developed for Australian banks. The New Payment Platform Australia company, aims to make getting and sending money from your bank account easier.
Having developed the platform with SWIFT, the New Payment Platform product, PayID, is set to revolutionise the Australian economy. How? By giving consumers access to an easy to use, super simple payment system – yep, even easier than mobile banking.
So what, exactly, is this PayID thing? It’s a single password that’s used to unlock a multitude of payments. Depending on how you set yours up, collecting cash from your buddies could be as easy as making sure they have your phone number. How’s that sounding? Good? Ok, let’s figure out how to get a PayID.
Your bank or credit union will let you know when they’re ready for you to set up your own PayID. They’ll probably pop up a notification when you log into your internet or mobile banking account.
Here’s the catch – you’re going to want to create an ID that is simple and easy to remember. No, not easy to remember like that super clever password you came up with and could never get right, and probably not your date of birth, either. Come on – you can do this. Of course, your financial institution may restrict you in terms of what you can use, limiting the options to things like your mobile number, email address or ABN.
There will be a quick confirmation of information ownership, and the PayID will be linked to your account.
If you’re worried that your bank is a little behind the curve, don’t start stressing just yet. Business Insider says 60 Australian financial institutions have launched PayID, and the official New Payment Platform website has a handy list of the 13 New Payment Platform participants, including:
Once you’ve set up your new payment platform ID you’ll be able to send it to people who owe you money. They’ll just need to log on to their mobile or internet banking and make a PayID payment. Selecting PayID is done much like how you would choose to pay a BPay or payee from internet or mobile banking. This new payment platform embodies what is real time payments – and it’s all super easy to use.
Whenever a person pays you using your PayID, your name will appear. All they’ll need to do is confirm that it is, in fact, you that they’re shipping their hard-earned moolah off to. If it’s an Osko payment, you’ll have the money within a minute – how good is that? What is real time payments? This is it, right here.
We loved how treasurer Scott Morrison put it to Business Insider:
“Gone will be the days of frustrating three-day waits for transfers between accounts of different banks. Customers will be able to securely pay businesses, split restaurant bills with their friends, and pay a tradesperson instantly.”
It gets better – according to ABC, it seems like not even weekends and public holidays will stand in the way of you getting your cash transfers!
Now, you’re probably going to have a bunch of concerns about the new PayID system and, most importantly, how to make sure this new payment platform keeps your data locked up and safe.
If you’re anything like us, you’ll have already wondered how to protect your PayID and keep it safe from cybercrime. Your bank will never ask you to provide your PayID via email links, or phone calls, or ask you to provide your internet banking username or password. If you’re ever unsure about some communication, rather call your bank and check if it’s them, and if it’s really necessary!
The New Payment Platform Australia company has used the highest data security standards, which they monitor 24/7, according to BeyondBank. Furthermore, your PayID can only be used to make payments to you. Someone in possession of your PayID cannot withdraw money from your bank account.
In short, it’s a one-way payment system that you have complete control over. Only you can release funds from your own account.
When a person sends money to you using your PayID, they will only see the name you have provided, not your banking information, account number or contact details – unless they have those already.
To keep it all super secure, there are a number of verification steps and stops that will be required in order to set up a PayID. This is to make sure that no one can set up a PayID using your information.
Here’s where it really starts to get good. If you’re a tradie, or work for yourself in any way, you’ll know that one of the biggest stressors can be making sure your clients pay you. In the past, you’ve probably issued invoices after finishing up a job and had to wait for a whole month, if not more, for clients to pay their bills. You may have even had to make those excruciating calls to people asking if they could please, please pay up.
Now, picture this – you finish a job, write out an invoice quickly and hand it over to the client. They quickly log into their mobile banking and, using your simple PayID – which could be your phone number or email address – can pay you there and then. The best part? The payment should clear in a few minutes, after which you can be on your merry way.
According to Scott Morrison, consumers will also be able to attach extra info to their payments, like invoices or instructions for how the payment is to be used. This means businesses will have a streamlined method of making and receiving payments. This should hopefully ease the ‘what was this payment here’ conversations that go on near the end of each financial year.
You can find out more about PayID for business here.
Say goodbye to waiting for someone’s BSB and account number, or someone pretending not to have received yours. At the same time, you can kiss that lengthy payment process goodbye. If you’re like us, your routine probably involves at least 6 checks to make sure you’re paying the right person.
The New Payment Process and PayID just went ahead and made our lives so much simpler.
Setting yours up is all that’s left for you to do!
Don’t believe us? Just ask the fish.
Of course, if you’re looking for a way to afford something a little out of your reach right now, you could also look at taking out a personal loan with us. Head over to our home page to get started!