Reserve Bank of Australia calls for better NPP access and roll-out
The Reserve Bank of Australia has recommended 13 measures to address access and roll-out concerns regarding the New Payments Platform (NPP), reports Jane Connolly.
The report’s publication follows a public consultation carried out with input and assistance from the Australian Competition and Consumer Commission (ACCC). Although the report concludes that the NPP is addressing innovation gaps to enable payments functionality, the consultation raised a number of issues.
Slow and uneven roll-out of NPP services by major banks is believed to have hindered the development of new functionality. Stakeholders also highlighted potential barriers to entry for new participants, which could prevent the NPP being open to a range of payments services providers.
The report contains 13 recommendations to New Payments Platform Australia (NPPA), including the promotion of timely roll-out of NPP services and development of new functionality, along with suggestions to address access issues.
These include recommendations to NPPA to take action on its participation requirements, the required capital contribution for participation and the governance arrangements for assessing new participants.
Another review will commence no later than July 2021, although the bank could decide to carry out the review sooner if further concerns are raised about NPP access or functionality.
If NPPA fails to make sufficient progress on the report’s recommendations, the bank will consider the case for regulation via standards mandating functionality, or an imposed access regime.
