The Australian Payments Council released a draft national payments strategy with a ten-year vision in December 2015. As part of the strategy, the Council planned several initiatives under three overarching themes: security and trust, managing Australia’s payments mix, and enabling the future. The NPP, which facilitates real-time payments, falls into the category of managing the payments mix. The Platform can be leveraged in two ways: sending or receiving payments using an existing/supported NPP message or creating a new product or service, including a modified message set and end-user characteristics (overlay service), and offering that product or service to NPP participants and their customers. Thirteen financial institutions participate in the scheme: ANZ, Commonwealth Bank of Australia, Citi Group, National Australia Bank, RBA, Westpac, Cuscal, ING Australia, HSBC Bank Australia, Australian Settlements, Indue, Macquarie Bank, and Bendigo and Adelaide Bank. Other initiatives under way in the payments plan include a strategy for addressing card not present (CNP) fraud, an Australia Financial Crimes Exchange, Issuers and Acquirers Community, and digital wallet technical security standards.
Traditional banks must evaluate their place within the payments ecosystem and be open to partnering with FinTechs and third-party developers to drive value collaboratively.
Structural changes are spurring payments industry participants to evaluate the future of the business as well as their role in the months and years ahead.
The Payment Services Directive 2 or PSD2 has been in full force for more than six months, and its impact is being felt not just in the European Union, but across the globe – with several markets, such as Singapore, Australia, and Nigeria, as well as Hong Kong announcing open banking initiatives inspired by the PSD2