APMs in focus: PayID

In the fast paced world of digital payments, customer expectations have never been higher. People want payments to be instant, simple and secure. In Australia, PayID is rising to meet this demand.

As an innovative alternative payment method (APM), PayID is quickly becoming a preferred way for over 18.5 million Australians to send and receive money. But what exactly is PayID and why should merchants pay attention?

What is PayID?

PayID is part of the New Payments Platform (NPP), Australia’s national infrastructure for fast payments. Launched in 2018, it allows users to receive payments in real time using something easy to remember, such as a phone number, email address or Australian Business Number (ABN), instead of a traditional Bank State Branch (BSB) code and account number.

Think of it as a digital nickname for a bank account. Once a PayID is linked to an account, customers can simply input that identifier to make payments and the funds arrive almost instantly.

How does PayID work

PayID operates through a simple yet secure process that eliminates the friction typically associated with traditional bank transfers.

1. Registration: A user creates a PayID by linking a unique and memorable identifier (such as a mobile number, email address) to their bank account via their financial institution.
2. Initiating a payment: When making a payment, the sender enters the recipient’s PayID into their banking app or online banking portal. There’s no need to input BSB or account numbers.
3. Verification: The system automatically checks the PayID and displays the recipient’s registered name before the payment is processed. This ensures that funds are sent to the intended party, significantly reducing errors and fraud.
4. Instant fund transfer: Once confirmed, the payment is processed instantly via the New Payments Platform (NPP). Funds arrive within seconds, regardless of the day or time.
5. Notification: Both parties typically receive real time confirmation of the transaction regardless of the day and time, offering peace of mind and greater transparency.

This straightforward flow makes PayID especially appealing in both personal and commercial contexts. For merchants, it supports fast, verifiable payments that help optimise operations and customer experience.

Why Australian consumers love it

By the end of 2025, PayID registrations are expected to reach 20 million, gaining traction as a common way to pay. This APM offers a blend of convenience, speed and security that aligns perfectly with today’s digital lifestyles.

Here’s a deeper look at why it’s winning consumer trust:

1. It’s fast: PayID enables real time payments, 24 hours a day, seven days a week, even on weekends and public holidays. There’s no waiting for funds to clear, making it ideal for time sensitive transfers.
2. It’s simple: Consumers can use identifiers they already know, like a phone number or email address, which simplifies the process.
3. It’s safe: Before a payment is processed, PayID confirms and displays the recipient’s name, providing an added layer of reassurance. This feature reduces the risk of sending money to the wrong person or business and strengthens consumer confidence.
4. It supports everyday use: Whether paying for a business or shopping online, PayID provides a frictionless experience. The increasing use of PayID for both personal and commercial transactions shows that it's quickly becoming embedded in daily life.

Why merchants should care

For merchants engaging with Australian consumers, offering PayID at checkout presents a meaningful opportunity. Here’s why:

• Better checkout experience: By offering a fast and locally popular payment method like PayID, merchants show they understand and value the preferences of Australian customers. This builds trust, enhances the overall checkout experience and encourages repeat business.
• Instant fund transfers: PayID enables real time payments, allowing funds to leave the customer’s bank account within seconds. This helps remove friction from the purchase process and gives more assurance to merchants.
• Lower processing costs: Because PayID bypasses traditional card networks, it typically comes with lower transaction fees. This helps merchants retain more of their revenue, especially valuable for businesses with high transaction volumes or low margins.
• Reduced risk of fraud and chargebacks: PayID’s verification process displays the recipient’s name before payment is confirmed, adding an extra layer of trust. And since it operates outside of the card ecosystem, it dramatically reduces the risk of chargebacks, helping merchants avoid unnecessary disputes and administrative headaches.

How PayID works with emerchantpay

At emerchantpay, we know that adapting to local payment preferences is key to success in global commerce. That’s why we constantly expand our APM offering with options like PayID, helping merchants grow into key markets with confidence.

Our flexible integration options make it easy to add PayID to your payment offering. You’ll also benefit from advanced reporting, valuable payment insights and expert guidance, making APM management seamless and scalable.

As a trusted partner, emerchantpay is committed to delivering efficient, customer centric solutions that meet payment expectations, wherever customers are. PayID helps merchants offer an effortless payment experience, develop stronger customer relationships and tap into new opportunities in the Australian market.