When it comes to sending money from one account to another, in past there used to be a lot of complicated process. And you had to remember the account numbers and the branch and what not. But that time is gone and days are changed. Life has moved to another level where payments are happening instantly.
India started UPI and America started FedNOW which are the current popular instant payment services. And those payments work like as if they are mkaing use of email address and QR codes, so just scan can help get the money to right address. Same has been happening in Australia too.
Name of the instant payment system in Australia is known as - PayID. So in this post, I am going to briefly introduce you to the PayID system which is used to send the funds between the accounts.
What is PayID and how does it work to move the funds?
Australia has a financial body that is named as new payments platform and it is working on the online and instant payments. They have released the instant payment system called PayID in 2018. And as the pandemic happened, this payment feature has matured into everyday system. And this has been used to move the funds from one part of the account to another in australian banks.
Basically here you can use the dedicated app or banking app. Then your phone number or the email ID becomes the payment address. So no need to remember all those hard details and no need to push for the heavy ABAN and other SWIFT details. All you need is the payID app and the funds to move from one place to another.
You can read more about PayID here.
How about security? apps? and how to identify the PayID?
Considering the app takes the email address and the phone number as a means to identify other accounts, you can see how they are secure. You are not adding wrong digits etc. Instead you just make sure to use the apps of the banks and verify the address easily there and that would make it easier for you to avoid sending the funds in the wrong place. This way the security part is also taken care of along the way.
As for the apps there are third party apps and then there are some of the banking apps that makes it easy for you to use and send the funds. Like you have the PayID section in most of the australian banks where you can see the options to accept and send the funds. So this kind of completes simplicity part of the payID platform. In short it just works without much hassle. You can read more here.
How does PayID compare to UPI? FedNow? Crypto?
All these systems are centralized and the banking managed. So they are not like crypto. Instead they are likely to be more simple and local solutions. So they can't be compared to the crypto and the stablecoins. UPI is still faster in comparison to most of the digital payments due to limited input it requires to identify and send the funds to another person.
PayID is a good payment system and it serves the purpose for the Australian bank account consumers. And they are now being adopted in the business and the small business. Along with this CBDC is going to make an entrance and we are going to see how that would impact the PayID adoption too. So let's see where it takes from now onwards when the crypto would compete with it.
PayID is an instant payment platform from the Australia. And it is one of the similar services like FedNow and UPI. In near future it would also have CBDC feature and we would see how this all changes would help Austalia get more digital inclusive state.