Fast Retail Payment Systems - Reserve Bank of Australia.pdfVIP

Fast Retail Payment Systems Stephanie Bolt, David Emery and Paul Harrigan* In December 2014, a group of Australian financial institutions announced that funding had been secured for the next phase of the New Payments Platform (NPP), which will provide the capability for Australian consumers and businesses to make and receive payments in near to real time. The NPP is one example of a fast retail payment system, a number of which have been implemented in other countries in recent years. This article provides an overview of some of the features of fast payment systems and discusses the approach taken in the design of the NPP. Introduction Background On 2 December 2014, a consortium of Australian The ability to make payments in real time has been financial institutions announced that they had a feature of large-value payment systems for many committed to funding the building and operation years. Many countries implemented real-time of infrastructure that will support a new fast retail gross settlement (RTGS) systems in the 1990s payment system.1 and early 2000s as a way of reducing risk arising The new system, referred to as the New Payments Platform (NPP), will be a landmark from the large exposures that could otherwise change for the Australian payments system, bringing build up when settlement of funds between not just immediacy of retail payments, but a range institutions is deferred. These real-time systems of other advances that will improve convenience are generally aimed at facilitating a relatively small for