Real-time payments are transforming the way that bill payments are made, offering significant opportunities to enhance customer interactions and accounts receivable processes.
Bill payments are a whole-of-business function that impact many levels of operations within a company and provide customers the opportunity to pay securely via different payment options
Timely and precise payments are essential for the Chief Financial Officer (CFO), Treasurer and teams in facilitating efficient reconciliation that’s ideally automated. The Chief Customer Officer (CCO) focuses on meeting customer expectations and providing an optimal customer experience (CX) and the Chief Information Officer (CIO) enables infrastructure to enhance the payment platform’s options and capabilities when needed.
The Background of Real-Time Payments
Real-time payments are not a new concept. Japan developed the first real-time payment (RTP) system in the 1970s. By 2010, several other countries including the UK, China and India had their own RTP rails. Australia joined the real-time payments revolution in February 2018 with the launch of the New Payments Platform (NPP).
The development of real-time account-to-account payments initially focused on peer-to-peer (P2P) transactions. The obvious appeal to consumers created interest and rapid adoption of this payment method resulting in more than 15 million PayIDs now registered in Australia.
The focus is now on real-time payment solutions for businesses. The use cases for this payment method continue to grow as does the benefits to the business when incorporating this payment type into its payment strategy. The 24/7/365 accessibility of the NPP, in addition to the use of ISO20022 messaging, makes billing and receipting a streamlined, efficient process resulting in operational efficiency and cost savings.
Let’s delve further into PayID for Business, exploring the options, factors to consider, and benefits it offers to Australian businesses.
What is PayID for Business?
PayID for Business is an Azupay solution that allows businesses to create a unique identifier linked to specific invoices, bills or payments wallets, simplifying the payment information and process for their customers. Instead of sharing complex banking details such as BSBs and account numbers, businesses can provide their customers with a single, easy-to-remember PayID, such as an email address or phone number.
When customers make payments using PayID, the funds are transferred directly to the business’s linked bank account in real time, streamlining transactions and reducing the risk of errors associated with manual entry of banking information. This service is designed to improve payment efficiency, enhance customer convenience, and reduce administrative burdens for businesses.
Azupay extends this capability even further with several types of PayIDs to meet different business needs and use cases. These options are as follows:
1. One-Off PayID
Businesses can incorporate this type of PayID in a number of ways. It’s a one-off, transaction specific PayID for a fixed amount that can be used for one-off purchases, invoices (digital and paper), as well as eCommerce and Point of Sale. It can even be linked to a QR code for easy scanning.
2. Static-Recycled PayID
This PayID type is reusable, customer-specific and for a fixed amount. It’s ideal for regular recurring bills where the billed amount is always the same amount. For example, telecommunication, insurance and rates businesses can use this PayID solution for their customers’ monthly or quarterly bill payments.
3. Static-Open PayID
For businesses with online accounts or digital wallet offerings, this PayID solution is ideal. It’s like the previous example in that the PayID is specific to an individual customer. However, the transaction amount is defined by the user so the value can vary and the PayID does not get de-registered after use. It remains “open” so that the user can make top ups to their account or wallet at any time at their convenience
PayID for Business Considerations:
Making changes to existing bill acceptance processes, especially at scale, requires planning and precision. Businesses need to ensure that billing information enables both continuation of service and straight-thru-processing. Undergoing a thorough review of a business’s current payment acceptance methods will ensure a solid understanding of the difference costs associated, particularly when investigating the indirect costs that come in to play with certain payment methods (dishonours or returned payments requiring manual intervention for example).
Other considerations include cost and project prioritisation for updating or replacing legacy enterprise systems that are not equipped to integrate with modern payment methods. A business will also need to consider changes and impacts to existing processes and be able to work through a change management plan to incorporate the necessary updates. This will be crucial to ensure a smooth migration, go-live launch, solid adoption, and a positive customer experience utilising any of Azupay’s real-time payment solutions.
PayID for Business Benefits:
Real-time payment solutions using PayID for Business are growing strongly in the bill payment arena. They offer an array of benefits to billers including low transaction costs and instant settlement 24/7/365 days a year, delivering savings, and improving cash flow. The rich data in each transaction and the ease of integration via APIs means that these solutions can be connected to major billing and ERP systems, providing automated reconciliation and detailed insights for reporting and planning.
PayID for Business also enhances the payment experience for consumers by offering convenience, speed, security, and flexibility, making it an attractive option for businesses looking to improve customer satisfaction and streamline their payment processes. Offering customers this secure method of payment also reduces the risk of errors and fraud with specific payer and payment details made available with every transaction for review before hitting the submit or pay-now button
Conclusion:
In conclusion, the integration of real-time payment solutions, such as PayID for Business (also known as PayID Receivables ), presents a transformative opportunity for modernising bill payment processes, enhances customer interactions and streamlines accounts receivable operations. Real-time payments not only ensure timely and accurate transactions, benefiting CFOs and Treasurers, but also prioritise customer satisfaction and optimal customer experience, as emphasised by CCOs. The technological infrastructure provided by real-time payment platforms, exemplified by the New Payments Platform (NPP), enables seamless billing and receipting, fostering operational efficiency and cost savings.
With the diverse options offered by PayID for Business, including one-off, static-recycled, and static-open PayIDs, businesses can tailor their payment strategies to meet specific needs and preferences. Despite the challenges associated with transitioning existing payment processes, the benefits of real-time payment solutions, such as low transaction costs, instant settlement, and automated reconciliation, far outweigh the initial implementation efforts.
Ultimately, PayID for Business enhances cash flow, provides detailed insights for reporting and planning, and improves the payment experience with convenience, speed, security, and flexibility. Embracing real-time payment solutions is crucial for modernising processes and driving future success for Australian businesses.
To learn more about PayID for your business, visit us at Azupay https://azupay.com.au/payid/
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Article written by Hannah Jones, Enterprise Sales Director of Azupay and Jacinta Tangkhpanya, Marketing Manager of Azupay. (LinkedIn profiles will be embedded here).
Azupay
Established in 2019, Azupay is an Australian fintech focused on payment solutions leveraging New Payments Platform (NPP) technology. Starting from our systems integrator heritage and close relationships with our clients, we have evolved to become a customer-centric product company and now a leading and specialist provider of cloud based real time payments APIs and Apps to Government, Banks, Billers & Businesses.
Sources
AP+ Australia – Stay Scam Safe, Use PayID https://www.auspayplus.com.au/stay-scam-safe-use-payid
