APCA reaches NPP design hurdle

The Australian Payments Clearing Association says it is nearing the third phase, dubbed "design and elaborate", of its eight-phase program to implement the New Payments Platform.

"As at September 2014, the program is engaged in legal review and participant commitment processes," APCA said in its annual review

Reiterating recent statements, APCA said "all 17 participants are conducting their own assessment of the final fully costed proposal, including its implications for their own internal systems development programs. At the same time, the formal legal structure for the program is being finalised."


APCA is yet to formally confirm the selection of Swift and Fiserv as contractors for the NPP.

"The NPP will be available to all ADIs who choose to participate and will enable them to process a wide variety of fast data-rich payments for their customers," APCA said.

KPMG has led the work for APCA "to develop detailed business and technical requirements to underpin the high-level business concept and develop a plan for the Program," APCA said.

In a reminder to any banks hesitating over the investment needed, APCA used the review to pitch the need for the entire industry to chip in.

"The best industry discussion and debate is necessary, but not sufficient, for payment system improvement. Collaborative decisions must be translated into collaborative action," APCA chair Robert Craig and CEO Chris Hamilton wrote.

"In the modern payments system, this means developing and improving ubiquitous infrastructure to support diverse, competitive payment services.
 

"Developing the payments network is not a task that ever ends. Continuous improvement is needed in response to a changing environment and changing user expectations."


Craig and Hamilton wrote that "systemic evolution usually goes in cycles, with periods of intense systemic development alternating with periods of rapid market-driven product and service innovation using the system.

"Our perception is that at least for the Australian industry those cycles are
shortening and merging. Increasing payments competition is driving new product development even as the industry is collaborating to innovate at the systems level.

"This makes for exhilarating but also exhausting times for those engaged in payments industry collaboration."