What is PayID and How to Use it?

What-is-PayID-and-How-to-Use-it
What-is-PayID-and-How-to-Use-it

PayID is the product of Open Payments Coalition (the coalition), a multinational infrastructure, finance, and non-profit partnership. It is a new unified payment ID interface that improves the connectivity for all customers and companies to send and receive money through various payment networks and multiple currencies worldwide.

PayID is meant to promote interoperability between traditional finance and fin-techs. As per the alliance, it has more than 120 million users around the world and seeks to break down the hierarchical data and protocols that already exist in payments, expedite digital payments and revolutionize the way money is transported all over the world.

It is a new way to get your bank account identified. It’s simpler and easier to recall than the conventional bank specifics most of us are used to, according to the company responsible for introducing it in Australia.

What is PayID and How to use it

What-is-PayID
What-is-PayID

Basically, a PayID is a unique identifier linked to your accounts, such as your telephone number or email address. It is meant to be used by other people who want to send you money, without them either knowing or asking for your BSB and account number.

Similarly, you can also send across to them money using someone else’s PayID.

This payment system was introduced to Australia as part of the New Payments Project (NPP), along with another banking system – BPAY’s fast payment service ‘Osko.’ This means you can use your PayID to get payments from other people over Osko almost instantly.

This payment system allows individuals and companies to access different payment networks everywhere with an easy-to-use and personalized address relative to one that is static and not so easy to use, like a bank account, routing or credit card number.

How to get PayID?

How to get PayID?
How to get PayID?

If your financial body provides PayID, it is easy to set up one for yourself. You can do this either through your mobile banking app or internet banking. Your PayID could be your email or telephone phone, ABN, ACN or landline phone. It depends on the organization you are with. For this, you may need to complete some security measures, for instance verifying your identity.

You should connect this to your bank account after you set up your PayID, and other users will be able to use this unique PayID to transfer money to you.

For a single bank account, you may have more than one PayID – your telephone number and your email address–but a single PayID can only be connected to one bank account at a time.

How to use PayID?

How to use PayID?
How to use PayID?

After setting up your PayID, if they plan to send you money, you can start providing your PayID to friends and relatives, instead of your BSB and account number. Others may give you their PayID, in turn, so that you can do the same for them.

The process of making a payment using PayID from others can depend on the bank that you are with. It may also include attaching the person you choose to pay to your payment contacts ‘address book’ via their PayID, given the financial institution of the other party still uses PayID as a service. Then you should pick the new email, and give them money as usual.

When you add a new PayID to your contacts, the name of the individual or business who owns that PayID will be displayed before it is confirmed, something NPP Australia Limited, the company running the service, claims can mean “fewer errors” when people make payments.

Is PayID safe?

Is-PayID-safe?
Is-PayID-safe

PayID’s website says that since PayID payments are made using the mobile app or online banking platform from your bank, the same very high level of security that protects your existing bank account payments will also safeguard your PayID payments.

PayID also provides end-to-end Travel Law enforcement options to satisfy the standards of FinCEN (Financial Crimes Enforcement Network) and FATF (Financial Action Task Force).

Benefits of using PayID

1. Fast Transaction

You do not need to wait for many business days for your payments to be credited to your account. PayID works with the New Payments Platform (NPP) to process payments in minutes at any time of the day.

2. Know you’re paying the right person

By using your mobile number, email or ABN, you will have less chance of mistyping your BSB and account number. In addition, PayID transactions help you confirm you’re paying the right person or business by displaying the payee’s name for confirmation.

3. Easy to set up and use

This payment system is quite free to use, easy and fast to set up in your e-banking. It’s quite simple as logging into your e-banking app and following the prompts to register your email and mobile number as your unique identifier.

4. Easy to remember

Receiving payments with your PayID means you don’t have to remember your BSB and account number. Just share your simple identifier, i.e. that’s your mobile number or email address, and get paid.

5. Safe and secure

This system has safeguards in place to protect users from fraud. This includes identity verification while setup and activity monitoring for misuse. Plus, it provides clear visibility over whom you’re paying.

6. No cost, subscription-free

PayID is a free solution for your business payments. If you are paying an employee or receiving payment for your products online, it makes digital payments more accessible to small businesses using a simple email address, ABN, or mobile number.

7. Improves your cash flow

This payment system could better your business cash flow and improve customer experience.

8. Reduces lost payments instances

Mistyped BSB and account number risk payments going missing. It reduces the risk of user error when making payments, and incorrect payments can be identified and reversed faster.

9. Fraud protection

The NPP is certified to the highest data security standards with 24/7 monitoring. With several scams, security measures exist to ensure fraudsters can’t impersonate businesses or payees. Before payment is confirmed, you can confirm the business name or name of their payee adding an extra level of security. PayID’s case study provides a real experience of fraud protection in action.

FAQs

1. How Does PayID Works?

It is a quick way of receiving and sending payments to various online casinos. Unlike other services, PayID uses only an email address or phone number to deposit or withdraw.

The use of PayID is simple and straightforward.

Users can link a PayID to their bank account. Once they do this, you can select this payment system to make payments at the casino without having to worry about an account number. All you need is the PayID of the casino they are sending the money.

2. History of PayID

It was introduced to the public on February 13, 2018. The aim of the service is to replace the use of existing bank codes, also known as BSB, and account numbers.

3. Where Can PayID Be Used?

It is used by financial institutions located mainly in Australia. Use outside of this country is very limited.

There are many types of financial institutions that support the services like banks, credit unions and building societies.

4. Can PayID Be Used For Withdrawals?

You can use it to withdraw money from online casinos.

The benefit of using this is being able to make instant payments. This includes transactions made on weekends and holidays. Thus, when looking to make a payment to your casino, PayID is a smart choice.

5. Who offers PayID?

Most banks, building societies and credit unions in Australia offer PayID. Search for your bank above.

6. Is PayID safe?

PayID is accessible within the online banking of participating banks, credit unions and building societies. This means the same level of security that protects your existing bank account payments will also protect payments made using a PayID.

This payment system can only be linked to one account at a time. However, you can create multiple PayIDs that you can link to either the same account or different accounts.

7. How safe is my personal information?

Your bank account’s personal information is governed and protected by your bank’s privacy policy.

8. How to close my PayID?

PayIDs can be managed and deregistered within your online banking. If you don’t find out how to do this, contact your bank for help.

9. Who owns and operates PayID?

PayID is a product of NPP Australia, the organization that operates Australia’s real-time payments infrastructure, the New Payments Platform (NPP). NPP Australia is a solely owned subsidiary of Australian Payments Plus, Australia’s domestic payment organization that also includes BPAY Group and eftpos.

About the author

Mamta Sharma