The New Payments Platform infrastructure will have far-reaching implications for individuals, governments and corporates; it will also present tremendous new opportunities. The challenge is, who will be ready and who will be left behind?
The National Payments Platform (NPP) has been in the works for a number of years and will deliver real time, data rich, addressable payments to Australian institutions and consumers.
If you are out for lunch, and the restaurant doesn’t allow split bills, it is not a problem. The NPP will allow you to pay your share direct to your friend’s mobile number, write a short note in the description and the cash will move in real time. The money will be in their bank account by the time they are back at the table.
Business in Australia will be simplified and accelerated, and with the NPP’s launch, there are five questions corporate and government should ask themselves.
With real time payments coming into ledgers, customers are going to demand real time acknowledgement and information. Equally, the NPP will provide the chance to streamline reconciliation operations. Are my systems, people and processes ready?
Managing the inflow and outflow of working capital and liquidity is perpetual in banking, and the NPP allows real-time movement of money. How is this going to impact my treasury department and how can I take advantage of this new way of working to bring down my cost of funds?
Customers are even more demanding in the digital age and as the acceptance of the NPP grows, customers’ expectations will rise. How can we ensure a seamless customer experience?
I currently rely on my customers to enter our details correctly when being asked for payment. This leads to a myriad of errors and lost payments. How can I use NPP to remove some of the pain in this process?
Data is king and the NPP will allow a substantial increase in free form data; from 18 characters to 280. The ability to include links to documents with payments is a huge upside. How can I leverage this extra data to best serve my customers as well maximising my own insights and potential sales opportunities?
The NPP is a once-in-a-generation shake-up and a fundamental step forward in how money moves around the Australian economy. The threats and opportunities it provides to individuals, corporates and governments are significant.
So, who will position themselves for first-mover advantage and how will the wider economy adapt?
This article originally appeared in the KPMG Newsroom.