Slated for launch in 2018, the NPP will allow customers from participating financial institutions to send and receive money almost instantly, using a simple addressing service called PayID which shares more information than existing payments tech.
Lovney said the digitisation of payments aligns with the changes happening in other parts of larger business, particularly insurers.
“If you can assess and pay claims almost instantly and then put the money in someone’s account five minutes later then you really are transforming a customer experience,” he said.
Dobson said insurers, superannuation and other service-based financial providers which have been traditionally quite analogue are going through a digital transformation now.
“What they probably haven’t yet got to is the realisation that the payment execution can happen really quickly as well,” he said. “So they’re going to have to build that in.”
Lovney said the NPP would allow organisations going through digitisation to think about deep integration between their systems – including through the use of blockchain around smart contracts.
The two experts also touched on security and protection against fraud around the NPP, the developing launch timeline and the level of industry collaboration around the launch.
Listen to the podcast above to find out more.
Kate Sutherland is a bluenotes contributor