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PayID, a relatively new payment technology, has been rapidly gaining popularity in recent years. But what exactly is PayID? Where did it originate from and what benefits does it provide to businesses? Our Chief Technology Officer, Nick Tan, shares his insights.
The New Payments Platform (NPP) launched in Australia with PayID in February 2018 as a fast retail payments system. It was born to address a number of gaps in Australia's retail payments system that the Reserve Bank had identified in its 2010–2012 Strategic Review of Innovation in the Payments System1.
The infrastructure built by NPP connects financial institutions and payment service providers, like Monoova, enabling the delivery of reliable, efficient processing of instant payments. A key feature of PayID is the ability to use simple, memorable, unique identifiers, such as email addresses and phone numbers, for the sending and receiving of payments, instead of a long and complex BSB and bank account combination.
Since its launch, PayID has continued to evolve and improve. Today, PayID is supported by 110+ financial institutions and payment providers in Australia, and there are close to 13 million registered PayIDs, a 43 per cent increase since the same time last year with 315,000 new PayID registrations on average being added every month2. Usage and awareness of PayID continues to grow with recent research conducted by NPP Australia revealing that 47% of users use PayID at least weekly . Monoova’s early support for PayID for business use cases has meant that more than 10% of all PayIDs registered to date have been created by Monoova.
What are the benefits of PayID for your business?
Simplicity and convenience. With PayID, you can receive payments from customers quickly and easily. Customers simply enter your business's PayID, and the payment will be processed in seconds. Errors are eliminated and customers don’t need to remember and enter complex bank account details.
PayID is Secure3. PayID can help protect businesses and customers from scammers who may intercept invoices and change payment details to their own, and without any way of knowing the details were changed.
More payment options. Enhance your customer experience by offering more ways to pay. PayID allows you to accept payments from a range of sources, including bank accounts, credit cards, and digital wallets.
Cost savings. PayID can help reduce your costs and improve your bottom line by eliminating the need for expensive and inefficient payment systems, such as cheques and bank transfers. It can also reduce the cost of payment defaults, returns, collection by reducing manual errors and the amount of time and money you spend on processing payments, which can improve profitability and competitiveness.
In summary, PayID is a simple, efficient, and a cost-effective way for your businesses to make and receive payments. By adopting PayID, businesses can streamline their operations, enhance the customer experience, and improve their bottom line, making it an essential tool for businesses to stay ahead of the game in today's competitive and fast-paced business environment.
Get started with PayID for business.
References
- Strategic Review of Innovation in the Payments System
- ‘The Day You PayID’d Me’ launches for consumer and small business audiences
- PayID
