Real-time payment: busting the myths around PayID

Myth: PayID means I will no longer need a BSB and account number

While the service is new, it is safe, secure - and accessible only to those financial institutions connected to it.

What does it mean?

A ‘PayID’ is created when a customer links their chosen bank account details to a recognisable and memorable identifier such as a mobile phone number, email address or ABN.

The BSB and account number still exist however once a PayID is created, you will no longer have to share your information in order to get paid. You can continue to make payments or get paid how you do today. But there are some myths around PayID.

Myth: I can use the same PayID for all of my accounts

Not true. Your PayID can only be linked to one bank account - however you can link different types of PayIDs to one bank account. For example, you may choose to link your mobile number and email address to the one bank account.

A PayID is registered on a centralised addressing service shared among all participating financial institutions, that’s why it is not possible to link multiple accounts to one PayID.

Myth: I won’t be able to get a new mobile phone number/email address if I’ve used one to create a PayID

No. You will be able to easily update your PayID with your new number/email address or close a PayID if you no longer wish to use it. You’ll also need to remember to inform your payees of your new PayID details!

Myth: With PayID paying will be less secure

Not the case. PayID is safe and secure. The only difference is you don’t have to remember or share your BSB and Account number to get paid. 

Myth: If someone gets my email address they will be able to use my bank details without me knowing

A PayID cannot be used to take money out of an account. Users will be able to provide their PayID to people or organisations they wish to receive payments from.

There are also strict identification rules when a PayID is created to ensure the individual has authority to use the email address, mobile phone number, etc and operate on the financial institution’s account.

Myth: I can use my social media (e.g. Facebook/twitter) account as a PayID

Not at this stage. The PayID types supported by the centralised addressing service are phone numbers, email addresses, ABN numbers and Organisational IDs, with the latter two can only be registered by business entities.

Users are advised to check what PayID types are supported with their financial institution. At this stage, social media PayID types are not included across the industry.

Keep an eye on bluenotes for further updates from our experts on how and when the system will launch the benefits it will bring.

Kate Sutherland is a bluenotes contributor