The NPP and PayID are two popular names in the Australian payments system, preferred by many people as a way to make seamless and safe online transactions. If we look at the data from the ABA site, 20% of all payments within the country are currently processed through PayID. And as of May 1, there are 15 million PayID registrations, which, compared to 2021, is up 6 million.
This widespread use is also the exact reason why you can now find so many businesses and companies, including PayID online gambling platforms, that feature this modern banking solution.
But are NPP and PayID completely safe? What are the key security measures they use? And how is your financial data protected with these payment systems? In this article, we will throw light on all these questions.
What is NPP – Brief Overview
Before we get down to the main security aspects of NPP and PayID, let’s first understand what they are and what the idea behind them is.
In simple words, NPP, the New Payments Platform, is an open-access framework in Australia that is used for fast and convenient transactions. It came to the scene in 2018 as a response to all key objectives (such as the ability for users to send or receive more through remittance information, perform real-time transactions, etc.) brought out by The Reserve Bank of Australia in their 2012 Strategic Review.
Now, NPP lets the government, businesses, and merchants conduct simply addressed payments, with nearly real-time availability of funds to the recipient. And this on a 24/7 basis.
Also, currently, there are over 60 financial institutions and banks connected to the NPP.
What is PayID – Brief Overview
PayID is one of the first services introduced on the New Payments Platform, along with Osko.
As you can easily guess from the name, it is an ID-based banking option that lets customers make online transactions without the need to go through time-consuming verification procedures. In other words, PayID is a unique, easy-to-remember identifier connected to your banking account that, in a sense, replaces the role of your account number.
With PayID as your payment method, you will just need to log into your respective banking account and use the payee ID to make an NPP deposit. Typically, the ID is either the mobile number or the email address of the user.
How Secure Are NPP and PayID
(Source – freepik.com)
Regarding safety and security, NPP and all services on its platform, including PayID, have some quite useful measures in place. Here, let’s have a look at the core ones.
#1 Minimized Risk of Mistakes
The key advantage that comes with using PayID is that it gives you an opportunity to see the name of the person before sending funds. This allows you to be sure that you are transferring money to the right person or organization and minimizes the risk of errors.
#3 Customer Authorization
All payments taking place using NPP are made by the customer authorizing the transaction in their bank’s or financial institution’s online banking platform. Like all other mobile and Internet banking transactions, an NPP payment is subject to certain fraud and safety protections, including authentication processes like biometrics.
#3 Increased Scam Awareness
Banks and financial institutions partnering with NPP educate users to remain alert to scams that try to deceive or trick. This covers reminding customers to never give away login information such as usernames or passwords and to question unexpected or strange phone calls or emails from people asking for their banking details or money.
#4 Enhanced Privacy and Confidentiality
Another notable benefit of PayID is that, apart from your name, you are not asked to share any personal or financial information with others or third parties. Thus, this payment option is quite good for those who care about their privacy.
Some Final Notes
In a nutshell, PayID, along with NPP, has enormously assisted in making huge progress in Australia’s digital payment space. And the country’s current position as the 13th biggest e-commerce market worldwide is the best proof of it.
However, this doesn’t mean there are no loopholes at all. For instance, lately, there have been many cases of PayID fraud in the industry.
According to the team behind PayID, only in 2021 alone, Australian businesses and consumers lost over $200 million to malicious actors who used different scams to trick people. In most cases, scammers pretended to be another person or company, like ATO, Centrelink or a utility firm and then duped the customers into transferring funds into a different account.
But no need to worry, as to fight all possible hacking attacks and scams, NPP and PayID regularly upgrade their protective measures and security tools.
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