BPAY has been appointed to provide the first overlay service on the New Payments Platform (NPP), currently called the ICS

The NPP will provide all the Basic Infrastructure like networks, messaging and a centralised Addressing Service, all linked to the RBA’s new Fast Settlement Service.

The Addressing Service allows Financial Institutions to identify a payee’s account based on either their mobile number or email address, once they have registered at their Financial Institution. Alternatively, immediate payments can still be made to any Financial Institution using the payee’s BSB and account number.

The NPP Infrastructure and Overlay Services have been deliberately separated to encourage competition and innovation. This opens the system up to multiple parties and allows Financial Institutions, consumers and businesses to choose from the best solutions available in a competitive market of services.

Overview of ICS services

The ICS consists of 3 underlying services using the NPP’s Basic Infrastructure:


These services will be accompanied by up to 280-characters of information, meaning more data will accompany each payment.

The ICS will launch together with the NPP in 2017 with all participating Financial Institutions, offering the first service at launch with services 2 and 3 following in close succession.

Overview of the ICS and NPP structure

What does ICS mean for you, our Members?

The ICS provides you with a host of benefits:

  • Move payments from batch to real time on a true nationwide platform
  • Meet customer expectations for immediate interbank payments, whether consumer, SME or large business
  • Compete with new market entrants such as social payments
  • Each Financial Institution can innovate and compete by building off the base level service

How is the ICS different to BPAY?
  • ICS is primarily a Person to Person and Business/Government to Person payment service, whereas traditional BPAY is a Consumer to Business payments service

  • ICS is a complementary service to BPAY and BPAY View, addressing new and alternative payment markets

  • ICS provides Members with a trusted real time payment solution helping protect your customer base from new entrants to the market

  • Unlike BPAY, ICS does not provide data validation or payment reconciliation

 
What are the benefits of the ICS?
Consumers
  • Pay anyone in real time, at any Financial Institution, from anywhere using someone’s email or phone number
  • Confidence in a fast, secure and reliable payment service, with funds instantly available
  • Data-rich payment information allows for a more accurate payment description
Small business
  • Faster payments and easier reconciliation
  • Better cash flow and less time chasing and reconciling payments
  • Simple to sign up and start using, integrated into digital banking platforms
Large businesses and government
  • Real time payments (including a statement), delivered securely, with a complete audit trail
  • No more uncashed cheques, and no more customer support calls to find out what a payment was for
  • Customer delight with the service’s speed and reliability
The economy
  • The ICS will kick start innovation in the payments industry
  • This will go a long way towards replacing cheques and low-value cash payments
  • Performance and productivity improvements, from easier payment reconciliation to the delivery of rich payment information
 
For more information

To read more about BPAY being selected to deliver the first overlay service on the NPP, the ICS, see the BPAY media release and the APCA media release. You can also speak to your Financial Institution BPAY Account Manager or contact the ICS Project team via: ICS.ProgramOffice@bpay.com.au