Want to pay a friend or family member some money you owe them. Pay Id is the new technology that is making this process easy. You can use this instant payment transfer technology on your phone , computer or ipad.
All you need now to make a payment to anybody is their phone number or email.
Technology has been improving in leaps and bounds, with major banks now allowing their customers to use their smartphones to withdraw money from ATM without bank cards (called cardless cash with commonwealth bank). Westpac bank has their own version of cardless cash as well
Pay ID takes this one step further allowing you to pay anyone instantly.
How does PAY ID work?
You need to register your email or phone number with Payid in your bank account. I have a bank account with commonwealth bank, so I have trialled this feature with their new pay id service and attached some snapshots below of how it works with commonwealth bank.
[Mind you no new technology is scam free and i will tell you a little story below, to make sure you stay aware of scammers too. Keep reading 🙂 ]
How to register
To create a PayID you’ll need an eligible CommBank account, an Australian mobile phone number3 and the latest version of the CommBank app.
How it works
Use PayID to receive money
To receive payments you’ll need to register your mobile number as a PayID using the latest version of CommBank app. It only takes a couple of minutes.
Friends and family will then be able to pay you through their own bank’s mobile or internet banking using your PayID.
Use PayID to send money
To send payments to someone else, they just need to provide you with their PayID.
This may be their mobile number however other PayID types may include email, ABN, ACN and landline phone number, depending on their bank.
Once you have registered your mobile phone number with pay id, you just need to click pay id link in your bank account on your smartphone or computer and click on pay someone.
It will give you the option of pay via email or phone. Tap or click one of them. If you click on use mobile number – Next screen will allow you to choose a contact number from your phone contacts.
Just choose the persons mobile number and set $$ amount and click pay.
Your done – you have just transferred money to the other party
You will get an sms acknowledgement that you have sent money to that person and the person receiving money will also get an sms telling them they have received money and how they can claim it.
[ You can only link one PayID to one account at one financial institution. For example, if you have two personal everyday bank accounts, you would need two unique PayIDs – one linked to each account.]
Want to know more about pay id ?
Demo by beyond bank
Here is what payid.com.au has to say about their new payment innovation
PayID is a simple new service that makes sending and receiving money from your bank account a little bit easier. You create your PayID by choosing something easy
PAy ID is also linked to the NPP ( the New Payments Platform ) , which has the ability to send each other money in “real time. BSB and account numbers will still exist, but individuals and businesses can create other identifiers, called “PayID“.
Why use PayID?
Transfer money to friends and family using their PayID as quickly and easily as you transfer money between your CommBank accounts.
- Fast: Near real-time1 payments across participating banks
- Easy: No more scrambling for your BSB and account number to get paid
- Mobile: Available through the latest version of the CommBank app
- Secure: Backed by our 100% security guarantee2
- Simple registration: A few clicks and you’re ready
First time payments to a new payee may be held for up to 24 hours as a security measure.
What this means With NPP?
The NPP platform will remove the delays caused by weekends and public holidays and mean you can make transfers after business hours.
Around 60 banks, credit unions and building societies will begin rolling out services to their customers from today, with the number of financial institutions and accounts linked to the NPP progressively increasing over the coming months.
The Reserve Bank developed new infrastructure, the RITS Fast Settlement Service, to enable the settlement of NPP transactions between financial institutions in real time on a 24/7 basis across exchange settlement accounts at the Reserve Bank. The Reserve Bank is also an NPP participant with newly developed services utilising the NPP for its government customers.
Other payment platforms for online purchase and payments :
Alipay, which has an estimated 520 million active users, now supports payments in 27 currencies across 30 countries.
Android Pay has also been rapidly increasing in popularity.
Fraud risk with new PAY ID technology
With any new technology there comes the risk of new frauds and scams happening too. With Payid there will be concerns as payments happen in real time.The big concern will be detecting fraudulent activity and if this can be prevented as well in real time. This will surely have to be looked into and managed well by the banks’ risk management area.
Payments on the New Payments Platform may be faster and easier to make, but will they be safer? Time will tell.
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