Wannabe fintech disruptors were given a roadmap on how to make the most out of the New Payments Platform in Sydney in the last week.
Yes, banks and businesses can simply plug into the NPP when it’s launched later this year – payment transactions will be settled in real time using central bank money – enabling them to send payments between existing participants, the NPP’s Adrian Lovney Chief Executive Officer explains.
But where the system really gets interesting for startups and fintech entrepreneurs, Lovney explains, is the overlay services option the NPP offers.
The overlay services will allow businesses to brand their payments solutions using the NPP technology backend; create a customised messaging service; design a new customer proposition containing new data elements, Lovney outlines, during a presentation at fintech hub Stone & Chalk, to a full room evenly split between representatives of startups and financial institutions.
Payments provider B Pay will be the first company to create an overlay service on top of the NPP, Lovney confirms.
Make it happen
The possibilities for adapting the NPP are limited only to the imagination of the entrepreneur, Lovney says.
Slices of any existing segment in banking and finance where payments are required are up for grabs using the platform, he says.
“Think about orchestrating payments around the buying and selling of a private vehicle, which has a number of steps involving a number of counter parties, that’s the poster child for what can be done on this kind of system,” Lovney highlights.
“Superannuation fund processing requiring real time funds processing,” Lovney continues, brainstorming areas where startups could be looking for business ideas requiring an overlay.
“Invoicing, remittance; the ability to convert loyalty points to cash at the point of sale; government and emergency payments in the welfare space coordinated with health benefits; follow on capital raising pre fills in the form which enable you to ‘accept’ the offer,” all are ideas that can be turned into a business by partnering with the NPP, Lovney says.
“But I’m sure there’s more ideas in this room [for payments business leveraging the NPP] that are better than mine,” Lovney remarks.
As the H2, 2017 launch date for the NPP gets closer, Lovney has been doing the rounds, both at the big end of town in finance, and within the startup community describing the platform’s features and benefits.
Lovney gives a behind the scenes look at the last year and a half, bringing the NPP together in this recent InFinance article.
“We’ve picked up elements of payments platforms around the world… what we’re creating is a system where entrepreneurs can build a product on top of the rails of the infrastructure,” Lovney explains.
The NPP will be the 20th real time payment platform that’s been built around the world – separation of infrastructure and product is at the heart of it, Lovney describes.
Businesses don’t have to be a bank to get an overlay service, nor do they need to be prudentially regulated.
“You need to be a body corporate with a representative located in Australia, you need to be financially viable or solvent, you need the required level of business expertise and have a business plan for the service you want to run,” Loveny explains.
“I would focus on business,” Lovney says, offering his thoughts on where the opportunity for new payments-focused businesses resides.
“There’s a lot of people focusing on P2P and retail, I’d be thinking about the problems in the business community around invoicing, around the ASX, around helping to solve bank and business problems,” Lovney describes.
NPP's inaugural CEO, Adrian Lovney, will be speaking at Finsia's Future of Finance series of events around the country starting next week. For last minute registrations click here.