The way Australians make and receive payments is continuing to evolve, according to the Payments System Board that sits within the Reserve Bank.

Over the past year, there has been growth in electronic payments, new payment types (e.g. buy now pay later) and the New Payments Platform, according to the board’s annual report.

At the same time, there has been an ongoing decline in cash payments, a trend that has been occurring “for many years”.

The report also said that the Payments System Board would continue its research on central bank digital currencies – a digital form of money that might be issued by the Reserve Bank and used by households and businesses.

“Australians are readily embracing new payment trends, particularly those offering value propositions for greater speed and convenience,” according to the report.

“The bank has an important role in understanding these new technologies and innovations, as well as any implications for the competition, efficiency and stability of the payments system.”

How These Payment Types Work

New Payment Platform 

The New Payment Platform (NPP) is a real-time payment system, launched in February 2018, that can be used to make payments 24/7, 365 days a year. The NPP is available through a range of financial institutions, including banks and credit unions.

PayID 

PayID is a unique identifier (e.g. a mobile phone number or email address) that can be linked to a customer’s bank account. This means customers can send and receive payments without needing to know their BSB and account number.

OSKO 

OSKO is a service that uses the NPP to send payments quickly. OSKO payments are processed in real time, which means they can be received within seconds.

BPAY 

BPAY is an electronic bill payment service that can be used to pay bills from a customer’s bank account. BPAY payments can be made online, over the phone or through a mobile app.

Buy now, pay later 

Buy now, pay later services (BNPL) allow customers to make a purchase and then pay for it over time, usually in instalments. BNPL services are offered by several companies, including Afterpay, Zip and Klarna.

Are These Platforms Safe to Use?

The RBA has said that all of these platforms are safe to use, as they are all subject to strict regulation. Aside from the reserve bank, bodies that regulate these payment platforms include the Australian Securities and Investments Commission (ASIC) and the Australian Competition and Consumer Commission (ACCC).

The RBA has also said that customers should be aware of the risks associated with these platforms, such as the possibility of late fees and charges and the need to make repayments on time.