Fund transfers between accounts from different banks could be done in real-time starting January, thanks to a billion-dollar infrastructure upgrade.
Instant payments will be available for 80 per cent of accounts in Australia, including all customers from the big four banks, starting Australia Day 2018. More international and smaller banks are also expected to join the system soon.
“The core benefit at launch is the faster receipt of money in real time, and that will happen 24/7, 365 days a year,” said Adrian Lovney, chief executive of the New Payments Platform initiative, which built the technology.
“Through the weekend, public holidays, at 3 o’clock in the morning — funds will arrive in the recipient’s bank account in about 30 to 45 seconds.”
Lovney said while the old way of batch processing transfers helps with preventing frauds, customers are looking for immediacy in their financial services.
“They expect things to happen instantly, with a mobile phone, in a 24/7 digital economy — they expect if I’m going to send you money that you’ll receive it today and not next week,” said Lovney.
However, he said banks will continue to keep their fraud mechanisms up to task after the upgrade is finished.