What is Osko? Osko, in short, is a new way to pay people, businesses and transfer money between bank accounts using Australia’s New Payments Platform (NPP). Osko, developed by BPay and 13 banks, is a whole new payment infrastructure that gives lots of new benefits to Aussies like real–time funds transfers, making life that little bit easier for everyone. What is the New payments platform’s an overlay service and what will the NPP do for me? An overlay service is a tech that allows users, in this case the banks, to access exactly the same software as other banks but to set their own branding on it. It’s by using the same backend technology that makes NPP work so quickly and seamlessly, as all the banks will be speaking the same language (NPP), just with a different logo over it. As for the NPP, this launched in February 2018 and is making its way through the banks, with the bigger institutions using it already. It lets individuals and organisations send and receive fast and data–rich payments to, well, other individuals and institutions. More detail on NPP and its benefits You can make faster payments from your bank account to another account, as well as receive them. You have real – time clearing and settlement, 24 hours a day, seven days a week. You don’t have to restrict your financial dealings to banking hours. Your payments will have much more data attached to them than ever before. With Osko you have 280 characters with which to detail what the payment is for and who it’s going to. No more obscure acronyms and abbreviations! You can also use PayID. What is PayID? PayID is a form of financial identification that you can use instead of your name, BSB and bank account number. Your PayID can be your mobile number, your email or your ABN number. To receive money, you just need to provide the payer with your PayID – and they probably already know it. How can I send money to a phone number or email? In reality, you’ll be sending money to the account that’s been linked to that number or email using the Osko service. You have to have the account and the ID linked before it’s activated and ready to send or receive money. That’s easy, takes a few seconds in your bank’s mobile phone app or internet banking site. Look up PayID. It all sounds great; how will it improve my life, though? Osko and PayID will improve your life by letting you send or receive instant payments at any hour of the day or night. If you’re splitting a bill, for example, or booking event tickets, your friends can all pay you their share immediately. It’s also easier to remember the details, as instead of account numbers, you’ll be sending money to your “mum’s email address”. People with little ‘side-hustle’ part-time gigs like music teachers, after-school tutors, baby sitters and housekeepers can get paid easily and quickly without hassle or cash. What about businesses? If you’re running a business, Osko and NPP will help you to pay contractors and suppliers much more easily. If you settle your accounts at weekends or at night, it’ll happen in real – time rather than waiting for clearance the next day. Payees can see your payment land in their account, which is reassuring for everyone. The fact that you have up to 280 characters in any reference you may want to use means you can keep track of what you’ve paid and to whom. You can even add instructions, links or emojis! Which banks are using Osko? The Big Four – NAB, CommBank, ANZ and Westpac – are all using NPP and Osko, as are Citigroup, HSBC Bank Australia and Bendigo. In total, 60 banks have signed up to use the service, although some have yet to roll out. Find out if your bank is PayID and Osko–enabled yet. How does Osko work? How does PayID work? Not all banks are quite ready yet, but institutions are being strongly encouraged to get onboard by the end of 2019, so if your bank is ready, here’s what you need to do. Update your personal details If you’ve moved recently and not got around to telling your bank, let them know. Similarly, if you have a new mobile number or contact email, update them as well, because you’ll need them to set up your PayID. Set up your PayID Your bank will invite you to set up your PayID via your internet banking or mobile banking app. When you go through the process, make sure you use something you can remember and that’s unique to you, like your mobile number or email. You can then start to send and receive payments Once you’re set up, you can start sharing your PayID with friends, your freelance clients and so on so that they can pay you. You can also enter the details of your friends, contacts and service providers to send money to them. Frequently asked questions Will using Osko or NPP cost me anything? Banks and credit unions are not generally charging for this service, except if your account charges for additional transactions. This is rare. Is PayID safe and secure from hackers? Yes, your PayID and your funds are safe; they’re protected by your bank’s existing fraud–detection processes. You’re also entitled to recompense in the case of fraudulent transactions. There has been some media coverage about the safety of PayID but banks, regulators and government have confidence in this new system that has been in development for a decade. How do I know I’m sending the money to the right place or person? NPP offers users a payee–validation function so that you can see and check the information of the person, business or institution you’re sending the money to. You should always take a few seconds to do this before finalising the transaction. Are there limits to how much I can send? Most banks have a daily limit for PayID transactions to limit any damage from fraud. These limits usually range from $2,000 to $20,000 per day. Compare transaction accounts at InfoChoice. Can I send money overseas? No; your PayID can only be used for domestic payments. Can I link my PayID to another of my accounts? No; you can only link your PayID to one account at a time. Compare savings accounts and everyday transaction banking accounts at InfoChoice. The information contained on this web site is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser. If you or someone you know is in financial stress, contact the National Debt Helpline on 1800 007 007.