39
Payments Regulation in Asia
Figure 13. Reasons for Not Using PayID, % of respondents aware but not used in the past 12 months 77
There is still a litany of challenges to achieve NPP’s growth vision, including the staggered compliance of payment service providers from the official timelines and the lack of consumer awareness. The NPP also saw an average of more than 20 hours of downtime per service provider in 2023, making it the “least reliable” retail payments service according to the RBA Governor Michele Bullock. 78
PAYTO GROWTH AND ADOPTION
PayTo, the NPP’s service to facilitate direct entry payments, provides direct debit-like functionality, allowing consumers to transact and initiate fast payments from their bank accounts. The system is an alternative to the current direct debit system and can be used for in-person or online transactions. With market introduction in July 2022, consumer uptake has directly depended on bank enablement of the service for their customer accounts. All four major banks missed the initial deadline of June 30, 2022, and three of the four missed the subsequent April 2023 deadline for adoption. 79 80 Despite these delays, there’s been notable progress from suppliers, merchants, and financial institutions in integrating with PayTo. For example, in May 2023, Woolworths’ payments division Wpay commissioned payments services company Zepto
77
https://www.rba.gov.au/publications/rdp/2023/pdf/rdp2023-08.pdf
78 https://fst.net.au/financial-services-news/rba-holds-out-on-mandating-npp-for-all-bank-accounts-for-now/ 79 https://www.afr.com/companies/financial-services/banks-promise-to-meet-rba-s-delayed-payto-deadline-20230220- p5clxu 80 https://www.afr.com/companies/financial-services/banks-will-miss-major-deadline-for-real-time-payment-system-up - grade-20220314-p5a4dy
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