The global banking sector has seen a unified push towards more real-time payments systems. Australia has become the latest country to make inroads in this segment, spearheaded by SWIFT as it looks to launch a New Payments Platform (NPP) in the country.
Traditional banking has seen a rapid shift over the past few years. With an emphasis on mobile payments, newer forms of technology, and specifically real-time payments, the status quo has quickly changed. SWIFT has tried to stay ahead of the curve with its NPP in Australia, which is looking to disrupt the domestic payments space for a wide range of participants.
SWIFT has opted to chart a course that includes a real-time payments retooling for not just traditional consumers but also business and governments as well. In particular, the group has explored the way these entities transact with one another, choosing to focus on this interaction with regards to payments improvements.
This includes 24/7 real-time payments with full settlement through the Reserve Bank of Australia PayID. Furthermore, SWIFT will also support a new mechanism to link a financial account with an identifier code such as a mobile phone number, email address, or ABN for businesses.
The launch of the NPP in Australia could be the first step for SWIFT as it looks to make similar gains and product exposure in Europe, the Americas, and the rest of Asia. This tone was echoed by Alain Raes, Chief Executive of EMEA & APAC, SWIFT, who noted that recognized the importance of the NPP for the Australian payments industry.
“SWIFT has supported the evolution of payments systems around the world for more than 40 years and is delighted to have played an important role in the creation and roll out of real-time payments in Australia. The smooth delivery of the project is a measure of the great partnership that SWIFT and the Australian industry have developed throughout the collaboration,” he noted.
According to Mr. Raes, “The NPP has also showcased the expertise and innovative approach of SWIFT’s global payments team and the value that we can deliver to other markets, including the European Union as it moves towards the goal of a harmonised instant payments service within the Eurozone.”
In terms of SWIFT’s global strategy in 2018 and moving forward, the NPP looks to be a key initial step for the group. Next in line looks to be an emphasis on the euro area, which includes bringing its an instant payments messaging service to the region. SWIFT is targeting a November 2018 launch date, to coincide with the launch of TARGET Instant Payment Settlement (TIPS), a euro real-time payments service commissioned by the Eurosystem,