Disclaimer: This article is for informational purposes only. For specific advice regarding your financial situation, please consult your bank or a qualified financial advisor. All information is accurate as of the date of publication but may be subject to change.
What Is PayID? Overview of the New Payments Platform
If you’ve ever struggled to remember a BSB and account number, or waited days for a transfer to clear, PayID is the solution. It’s a simple, fast, and secure way to send and receive money using an identifier you already know—like your mobile number or email address.
What Is PayID and How Does It Work?
PayID is an Australian payment system that forms part of the New Payments Platform (NPP). Instead of using a BSB and account number, you link a simple identifier—such as your mobile number, email address, or ABN—to your bank account. When someone wants to pay you, they enter that identifier, and the system confirms your name before they confirm the payment. This provides reassurance that the money is going to the right person.
History of the New Payments Platform (NPP)
The New Payments Platform was launched in 2018 as a collaboration between the Reserve Bank of Australia and 13 of the country’s largest financial institutions. Its goal was to modernise Australia’s payment infrastructure, enabling real-time, data-rich payments 24 hours a day, 365 days a year. PayID was developed as the user-friendly addressing system for this faster network.
How PayID Differs from BSB and Account Number
The key difference is simplicity and speed. With a BSB and account number, you must provide and enter a string of up to 11 digits, and payments can take one to three business days to process. With PayID, the payer uses a memorable identifier, and the payment is typically completed in under a minute. The payer also sees the recipient’s name on-screen before finalising the transaction, adding a crucial layer of verification.
Which Banks Support PayID?
PayID is supported by all major Australian banks, including ME Bank, Westpac, Suncorp Bank, NAB, as well as many regional banks, credit unions, and neobanks. For specific details on setup, you can refer to the ME Bank PayID setup page or the Westpac PayID information guide for comprehensive instructions.
How to Set Up PayID — Step-by-Step Guide
Setting up PayID is a straightforward process that takes only a few minutes, typically done through your bank’s mobile app or internet banking platform.
Setting Up PayID in Mobile Banking Apps
For most banks, the process is similar. Using the Suncorp Bank App as an example, you log in, navigate to the payments or PayID section, and select “Create.” You will need to accept the terms and conditions and choose the identifier (mobile number or email) you wish to link. A verification code is sent to that identifier, and once entered, you select the account you want to receive payments into.
Which Account Details Can Be Linked (Mobile, Email, ABN)
For personal accounts, you can typically link a mobile number or an email address. For business accounts, you can also link an Australian Business Number (ABN) or Australian Company Number (ACN). According to NAB’s PayID guide, you can have multiple PayIDs for a single account, but the same identifier cannot be linked to different accounts.
Verification Process
When you register a mobile number or email as your PayID, your bank will send a one-time verification code to that contact point. You must enter this code to confirm that you have authority to use that identifier. This step is critical to prevent identity theft and ensure only legitimate account holders can create a PayID.
Managing Multiple PayIDs
You can have several PayIDs—for example, a mobile number for personal payments and an email address for online sales. However, each identifier can only be registered with one bank and linked to one eligible account at a time. If you want to change the linked account, you can do so through your bank’s settings without needing to notify others.
Sending and Receiving Payments with PayID
Once your PayID is set up, using it for daily payments is incredibly simple, whether you’re splitting a bill or receiving money from a sale.
How to Send Money Using PayID
To pay someone, log into your bank’s app or internet banking and select the option to pay via PayID. You will enter the recipient’s mobile number, email, or ABN. The system will then display the registered name associated with that PayID for your confirmation. This feature, as noted by Westpac, provides the confidence that you are paying the correct person. Once you confirm, the payment is sent instantly.
How to Receive Money Using PayID
Receiving money is even easier. Simply provide the payer with your linked PayID—your mobile number or email. They enter it into their banking app, confirm it matches your name, and the funds appear in your linked account within seconds. You’ll receive a notification if you have them enabled.
Payment Limits and Processing Times
While payments are near-instant, individual banks may set daily transfer limits, especially for first-time payees. For most personal accounts, these limits are substantial, often up to $1,000–$20,000 per day for standard transfers. For larger amounts, you may need to use a BSB and account number or contact your bank. As NAB explains, in most instances, settlement occurs in under a minute, though delays can happen due to technical issues or when a payment is subject to additional security screening.
What Happens If a PayID Is Incorrect?
If you enter an incorrect PayID—for instance, a mobile number that is not registered—the payment will not go through, and you will be notified immediately. However, if you enter a valid PayID that belongs to the wrong person, the payment will proceed because the name confirmation step shows you who you are paying. If this happens, you should contact your bank immediately to lodge a transaction dispute.
PayID Security — Is It Safe?
Security is a primary concern for any payment method, and PayID is built with robust protections. However, understanding these features and how to spot scams is essential.
Security Features of the New Payments Platform
PayID payments are protected by the same security frameworks that govern your online banking. Banks use encryption, fraud monitoring, and multi-factor authentication to secure transactions. The name confirmation step is a key security feature, allowing the payer to verify the recipient before money is sent.
Scam Prevention Tips
Because PayID transactions are instant and irreversible, they can be a target for scammers. Never send money to a PayID provided by an unknown seller, especially in online marketplace transactions. Legitimate buyers and sellers will not pressure you to use PayID for goods you haven’t inspected. If a request seems suspicious, trust your instincts and do not proceed.
What to Do If You Receive a Suspicious PayID Request
If you receive an unexpected request for money or someone asks you to verify your PayID by sending a code, do not comply. Scammers often use fake payment screenshots or claim they have “accidentally” overpaid and request a refund. Always verify the source independently by contacting the person or business through official channels.
Bank Liability for Unauthorised Transactions
Under the ePayments Code, Australian banks have a customer protection framework. As outlined by Westpac’s Online Banking Security Guarantee, if your account is compromised through no fault of your own, the bank will typically repay any missing funds. However, this guarantee relies on you keeping your sign-in details secure and reporting any suspicious activity immediately.
PayID Availability Across Australian Banks
While PayID is widely available, the specific features and eligible accounts can vary slightly between financial institutions.
Major Banks Supporting PayID (ME Bank, Westpac, Suncorp, NAB, etc.)
All four major Australian banks—ME Bank, Westpac, Suncorp, and NAB—fully support PayID. For example, Suncorp Bank allows personal account holders to create a PayID via their app, while business customers can set one up through internet banking, over the phone, or in a branch. Each bank provides detailed step-by-step instructions tailored to their platform.
Regional Banks and Credit Unions
Many regional banks and credit unions, such as Bendigo Bank, Bank of Queensland, and various customer-owned banks, also support PayID. However, not all have fully integrated the service. If you are with a smaller institution, it’s best to check their website or contact them directly to confirm whether they participate in the NPP for sending and receiving PayID payments.
International Transfers and PayID
PayID is exclusively for domestic Australian dollar payments between participating Australian financial institutions. It cannot be used for international money transfers. For sending money overseas, you will still need to use SWIFT, international bank details, or a specialist money transfer service.
Future Expansion of the NPP
The NPP continues to evolve, with the introduction of PayTo—a service that builds on the infrastructure to provide a more streamlined way to authorise and manage bill payments and recurring transactions. This represents the next step in modernising Australia’s payment landscape.
Common Questions About Australian Payments & Taxes
While PayID itself is not directly related to tax, many Australians have questions about their payment obligations. Here are answers to some common queries.
Do You Pay Medicare Levy If You Have Private Health Insurance?
Yes, generally you still pay the Medicare Levy if you have private health insurance. The Medicare Levy is a base levy of 2% of your taxable income that most Australian taxpayers pay to help fund the public health system. Having private health insurance does not exempt you from this levy. However, if your income exceeds a certain threshold, private health insurance can help you avoid the Medicare Levy Surcharge (MLS), which is an additional levy for high-income earners who do not have adequate private hospital cover.
Do You Have to Pay GST If You Earn Under $75,000?
No, if your business has an annual turnover under $75,000 (or $150,000 for non-profit organisations), you are not required to register for Goods and Services Tax (GST). However, you can choose to register voluntarily. If you are not registered, you do not charge GST on your sales, and you also cannot claim GST credits for your business purchases. Once your turnover exceeds the threshold, you must register for GST.
Do I Have to Pay Excess If Not My Fault (Car Insurance)?
If you are involved in a car accident and you are not at fault, you generally do not have to pay the excess on your comprehensive insurance policy. However, this depends on the specific terms of your policy. If you can provide the other driver’s details and your insurer is able to recover costs from the at-fault driver’s insurer, your excess is usually waived. If the other driver is uninsured or cannot be identified, you may still be liable for the excess.
Understanding “Pay If” Terms in Contracts
In construction and trade contracts, a “pay if paid” clause means that a head contractor is only obligated to pay a subcontractor if the head contractor has first been paid by the client. These clauses can be complex and are subject to legal scrutiny. In many Australian jurisdictions, such clauses are restricted or unenforceable to protect subcontractors. It is always advisable to seek legal advice regarding contract terms.
How Private Health Affects Medicare Levy Surcharge
As mentioned, having private health insurance directly affects your liability for the Medicare Levy Surcharge. For the 2024–2025 financial year, the surcharge applies at rates of 1% to 1.5% of your income if you are a single earning over $97,000 or a family earning over $194,000 and do not have appropriate private patient hospital cover. Holding an eligible policy allows you to avoid this surcharge, but it does not remove the base Medicare Levy.
PayID vs Other Payment Methods
PayID is just one of several payment options available to Australians. Understanding how it compares to other methods can help you choose the right one for your needs.
PayID vs BSB and Account Number
The traditional BSB and account number method is universal—every Australian bank account has one. PayID offers the advantage of speed (instant vs. 1–3 business days) and verification (you see the recipient’s name). However, PayID requires both parties to be at participating banks and for the sender to know which identifier to use.
PayID vs Osko
Osko by BPAY is the payment service that enables the fast payments. PayID is the addressing system used to route those payments. When you send a PayID payment, it is processed through the Osko system. You will often see the Osko logo when making or receiving a fast payment.
PayID vs PayPal
PayPal is a digital wallet that holds funds and can be used for online purchases and international transfers. PayID is a direct bank-to-bank transfer system with no intermediary wallet. For domestic payments between individuals, PayID is typically free and instant, whereas PayPal may charge fees for certain transactions or currency conversions.
PayID vs Cryptocurrency Payments
Cryptocurrency payments, such as Bitcoin or Ethereum, operate on decentralised networks and are not regulated by Australian banks. They are often used for speculative investment or international transfers but carry significant volatility and risk. PayID is a government-backed, regulated payment system designed for everyday Australian dollar transactions.
Troubleshooting PayID Issues
While PayID is designed to be seamless, occasional issues can arise. Here’s how to handle common problems.
PayID Not Working? Common Problems
If your PayID isn’t working, first check that you have correctly linked the identifier to an eligible account. Ensure that your mobile number or email is active and that you have entered the verification code correctly. Some banks may also have temporary system outages; checking the bank’s service status page can be helpful.
How to Update or Delete a PayID
If you change your mobile number or email address, you must close the existing PayID and create a new one, as you no longer have authority to use the old identifier. To change the account your PayID is linked to, you can usually do this in your bank’s settings. According to NAB, this can be managed in the PayID settings menu within internet banking.
What If the Recipient Doesn’t Have PayID?
If the person you are trying to pay does not have PayID set up, the payment will not go through when you use their mobile number or email. In this case, you will need to use their BSB and account number instead. Similarly, if you are trying to receive a payment and the sender’s bank does not support PayID, they can still pay you using your BSB and account number.
Contacting Your Bank for Support
For any issues that cannot be resolved through the app or online banking, contact your bank directly. Most major banks have 24/7 customer support lines. Be prepared to verify your identity and provide details about the transaction in question.
PayID FAQ
Is PayID free?
Yes, PayID is completely free to set up and use. There are no fees for sending or receiving payments via PayID, though standard account fees may apply to your bank account.
Can I use PayID for business?
Yes, businesses can register a PayID using their ABN or ACN. This allows customers to pay them using a simple identifier, and the name displayed during the payment confirmation will be the business name.
How long does a PayID transfer take?
PayID payments are processed in real time through the Osko system. In most cases, the transfer is completed within seconds, 24 hours a day, 7 days a week.
Can I cancel a PayID payment?
Because PayID payments are instant, they cannot be cancelled once confirmed. If you send a payment to the wrong person by mistake, you should contact your bank immediately to lodge a dispute. The bank will attempt to recover the funds, but there is no guarantee of success.
