Financial institutions are constantly coming up with new ways to make banking and transactions easier. Australians now have the benefit of using PayID, which does exactly that. This transaction method cuts both the time and effort it takes to send or receive money, allowing you to move money more efficiently than ever before.
The PayID system was developed by New Payments Platform Australia (NPP), a national payments infrastructure owned by the country’s banks. While PayID is exclusive to Australia, other countries have similar systems.
Understanding PayID
PayID works in a way that it connects a familiar piece of information to your bank account. This can be something like your mobile number, email, or business ABN. With PayID set up, you can transfer money to and from your linked account without the use of full account information. It works through a secure payment infrastructure supported by major banks in Australia, allowing for near-instant transactions 24/7.
Setting PayID up is extremely easy. If your bank supports the system, you can find the option to enable it when you log into your account through your bank’s website or app. This option is usually located in the payments section, and there you can connect it to a piece of personal information you want to use. Once you complete this process, you’ll be able to send or receive money without using your full account details.
PayID can be used to send or receive money from another individual, or to pay for products or services. When purchasing something online, all you have to do is provide the piece of information you connected to your account and confirm the payment. Australians are commonly using PayID to make deposits and withdrawals on online casino platforms, pay for subscription services, or shop on eCommerce websites. Businesses also rely on it when sending invoices or paying for freelance work.
Why Choose PayID?
As mentioned earlier in this article, the whole idea behind PayID is to make banking and payments faster and more convenient. Just the fact that there’s no need to input long account numbers each time you want to make a transaction cuts the time it takes to send or receive money. There’s also no need to double-check digits or stress about whether you’ve entered the right account details each time you send money.
This is the type of simplicity users were hoping for ever since online transactions became widespread and more people started relying on digital banking.
Payments made through PayID are processed almost instantly, even outside of business hours. So, if you want to send or receive money at night, over the weekend, or during public holidays, PayID will do the trick.
It’s also important to mention that security plays a huge role in PayID. The system was built in a way to protect users and their personal information. The network operates under strict financial standards and protects users at all times. Also, before confirming a transaction, you’re shown the name of the person associated with the account, so you always know where your money is going. PayID can only be linked to one account, providing even more clarity about the recipient.
PayID also protects you from scams and data breaches, as it doesn’t transmit any bank details such as BSBs and account numbers.
No Payment Going Missing
With PayID eliminating the need to type full account information when making a transaction, you can count on each of your transactions to go through without trouble. As long as the sender types in the right phone number, email, or another piece of information, the money will end up where it’s supposed to go.
This can be particularly useful to small businesses and freelancers who send or receive multiple payments every month. With very limited room for human error and payments being confirmed almost immediately, keeping track of all transactions becomes extremely easy.
Not only this, but PayID also helps simply communicate with clients and customers. Once the recipient provides their information once, the other party can just save it and use it the next time they’re making a payment. Besides making the entire process easier, this also creates a more professional experience for everyone involved.