With the advent of the New Payments Platform, transferring money between bank accounts has become significantly quicker and easier. It can be made even easier if you have a PayID.
What is a PayID?
A PayID is a new way to identify your bank account. According to the group responsible for its implementation in Australia, it’s intended to be simpler and easier to remember than the traditional bank details most of us are used to.
Essentially, a PayID is an identifier that’s unique to you, such as your mobile number or email address, which is linked to your account. It’s designed to be used by other people when they’re sending money to you, without them having to either remember or ask for your BSB and account number.
Similarly, you may be able to use someone else’s PayID to send money to them.
PayIDs, along with another banking innovation – BPAY’s fast payments service ‘Osko’ – have been introduced to Australia as part of the New Payments Platform (NPP). It means you may be able to use your PayID to receive payments almost instantly from other people via Osko.
When it comes to how PayID and Osko may need to be used together, the PayID website says: “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. Overtime we expect other payments products and services to make use of the PayID functionality, so it’s likely you will be able to use your PayID in many places, as well as in Osko.”
How do I get a PayID?
If your financial institution offers PayID, you may be able to set one up for yourself through either your mobile banking app or internet banking. Depending on the institution you’re with, your PayID could be your email address, mobile number, ABN, ACN, or landline number. You may have to complete some security steps, like confirming your identity, as part of the process.
Once you set up your PayID, it will be linked to your bank account and other people should be able to use it to transfer money to you.
You can have more than one PayID for a single bank account – your mobile number as well as your email address, for example – but a single PayID can only be linked to one bank account at a time.
If you’re looking to switch banks, you can compare transaction accounts with Canstar.
The table below displays a snapshot of 5-Star Rated transaction accounts on Canstar’s database for high transactors (individuals averaging 35 transactions a month) in NSW, sorted by Star Rating (highest to lowest) and then by provider name (a-z). Check upfront with the provider and read the PDS to confirm whether the provider offers PayID as a service to customers, and whether the product meets your needs, before opening an account.
How do I use PayID?
Once you have set up your PayID, you can start giving it to friends and family instead of your BSB and account number if they need to send you money. In turn, other people can give you their PayID so you can do the same for them.
The process of making a payment using someone’s PayID may vary depending on the bank you’re with. However, it could involve adding the person you want to pay to your ‘address book’ of payment contacts using their PayID, provided the other person’s financial institution also offers PayID as a service. You would then be able to select the new contact and send them money as per usual.
When you’re adding a new PayID to your contacts, you will be shown the name of the individual or business who owns that PayID before it’s confirmed, something NPP Australia Limited, the company running the service, claims may mean “fewer mistakes” when people are making payments.
Is PayID secure?
PayID’s website says that because PayID payments are made using your bank’s mobile app or online banking platform, “the same very high level of security that protects your existing bank accounts payments will also protect your PayID payments.”
Does my bank offer PayID?
The availability of PayID may vary by financial institution, so it’s a good idea to check whether your bank has started offering PayID yet. You can read a list of financial institutions which have rolled out the NPP and PayID to their customers here.