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.
- Strategic Review of Innovation in the Payments System
- ‘The Day You PayID’d Me’ launches for consumer and small business audiences
Things you should know
The above information is prepared by Monoova Payments Pty Limited (ABN 38 126 015 227) trading as Monoova (Monoova or We). Monoova is the authorised representative of Monoova Global Payments Pty Ltd ABN 77 106 249 852; AFSL No. 421414 (formerly known as Moneytech Limited), being the issuer of the Combined Financial Services Guide & Product Disclosure Statement Non-Cash Payment Products and Services (FSG/PDS). Copies of the FSG/PDS and the ancillary agreements and documents referred to therein are available by contacting Monoova at email@example.com. The above is factual information and given in summary form, and does not purport to be complete. Information does not take into account of your particular investment objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the information having regard to these matters, and in particular, you should seek independent legal, financial and tax advice. To the extent that the information contained above is sourced from third parties or provides link to third party websites, Monoova takes no responsibility for the accuracy, currency, reliability and correctness of any information included in the material provided by third parties nor for the accuracy, currency, reliability and correctness of links or references to information sources (including internet sites) operated by third parties. Information current as at 9 February 2023. [c] Mononoova.