INSTANT payments are now here with the roll out today of Australia's New Payment Platform which puts an end to the 'three-day wait' for money between banks.
The new system includes PayID and Osko payment systems which support immediate products and services payments rather than those that are not time sensitive.
Using PayID means using a simple identifier, such as an email address or mobile phone number, instead of remembering an account's BSB and number, can be used to receive payments into an account. What ID you can use will be advised by your bank. If your bank doesn't offer PayID, you will still be able make and receive payments using a BSB and account number.
Osko supports paying another person at another financial institution immediately, any time of day or week. Your banking institution can advise if you can use Osko, in which digital banking channel, and from which accounts.
As banks, building societies and credit unions roll out the real-time payments system during the year, users should ask the person or business they are planning to pay if Osko and PayID is available. When making a payment there may be a verification step which confirms if that person or business is uses one of these services.
The costs of these type of transactions using the New Payment Platform is set by the banking institutions.
Australian Bankers' Association CEO Anna Bligh said the New Payment Platform is the "biggest thing to happen" in Australia's banking industry since internet banking was introduced 10 years ago.
"The New Payments Platform is a $1 billion investment to deliver a better service to Australian customers, primarily funded and driven by banks.," Ms Bligh said.
"When fully up and running this brand new, cutting-edge system will mean that Australians who want to pay a tradesperson, split a bill at a restaurant or sell a piece of furniture online can make and receive payments instantly.
"We are among the first nations in the world to have such a system, with ours learning from others to create cutting-edge technology.
"Customers have long told banks that the old system of delayed payments between banks was a hindrance and inefficient in a digital world where everything is expected to occur instantly.
"This new system will transform the way people bank by abolishing the three days wait for transfers between accounts of different banks.
"Customers can rest assured that this new innovation is safe, with banks as always taking strong measures to protect personal information."