One in four PayID users have stopped or edited a PayID payment, preventing a mistaken payment or money being sent to the wrong person.
The findings are the results of research commissioned by NPP Australia, which oversees the payment addressing service offered by more than 100 banks, building societies and credit unions in Australia.
Managing Director of NPP Australia, Katrina Stuart, said the findings confirm the important role that PayID can play to combat fraud and mistaken payments.
“We’ve always believed that PayID can play an important role in protecting customers against fraud and mistaken payments, so we were pleased to see that PayID’s payee confirmation step has been a safeguard for at least one in four payments,” Ms Stuart said.
PayID acts as a simple replacement for a BSB and account number when making a payment. Registration of a PayID, and payments to a PayID are made within a bank’s, building society’s or credit union’s internet or mobile banking app.
When a person makes a payment to another person’s or business’s PayID, they are shown the name of that person or business before making the payment.
The research findings coincide with a campaign developed by the Australian Banking Association (ABA) that highlights how PayID can help businesses avoid scammers who imitate them in a bid to redirect customer payments into their own account.
The campaign follows a report from the ACCC highlighting Australian consumers and businesses had lost $227 million to payment redirection scams during 2021.
Ms Stuart said NPP Australia is working with participating banks to grow awareness of the PayID functionality, particularly as a tool for preventing fraud and mistakes.
“Today there are more than 11 million registered PayIDs in Australia. Seventeen per cent of payments made via the New Payments Platform (which offers the PayID capability) are made using a PayID, representing 30 per cent growth year-on-year.
“We think there is an excellent opportunity for banks, building societies and credit unions that offer PayID to continue to build awareness of the service, particularly as a weapon against scams and mistaken payments,” Ms Stuart said.
NPP Australia commissioned Snapcracker Research & Strategy to survey more than 2,500 consumers and businesses that make and receive payments. The survey found that:
- 50 per cent of total respondents (both users and non-users of PayID) worry about entering the wrong details when paying to account and BSB numbers
- 50 per cent of PayID users said they registered a PayID because it was a faster and simpler way to send money
- 30 per cent of PayID users said they registered a PayID because it confirms who they are paying before they make a payment
- 58 per cent of PayID users between the ages 18-24 claim to use the service as least once a week
Visit www.payid.com.au for more information or contact one of the more than 100 banks, building societies and credit unions that offer PayID to their customers and members.