What is PayID and how does it work?

What is PayID?

In its simplest form, it's an easier way for people to transfer money.

In its complicated form, it's a piece of information you choose that's linked to your bank account and acts as an identifier.

Instantaneous payments (also called Osko) and PayID are features of the New Payments Platform (NPP). First announced in July 2013, the NPP is a collaborative effort between Australia's biggest banks and financial service providers (including the big four and the Reserve Bank of Australia).

The NPP is the infrastructure that facilitates faster, more convenient banking.

One of the biggest perks of the NPP has been giving consumers the ability to make 'real-time' transfers between senders and banks.

When would I actually use PayID?

Now, before this feature became available, you’d likely find yourself in this scenario with a friend after a meal:

“Let’s split the bill. You can send $30 to… hang on… what is my account number again? Give me a sec… (cue the frantic app-tapping)”

"Okay. My BSB is 123456 and account number is 12345678.”

With PayID, it’s way simpler. You can say:

“Let’s split the bill. Send me $30 with PayID. It’s my mobile number.”

Once that mobile or email is entered, your friend’s banking app will pop up with your full name to confirm. Sent. You have the money instantly.

While it doesn’t replace your BSB or account number, it’s worth thinking of it as a linked ID you can use for quicker payments to friends, family or businesses.

How do you use PayID?

Using it is straightforward and fits into how you already move money day to day. Typically, you’ll use the system in one of two ways:

1. Receiving payments: Once you’ve set up a PayID, share it with friends, family or coworkers instead of your BSB and account number.
2. Sending payments: Sending money to someone’s PayID may vary slightly depending on your bank. Add their PayID as a new contact using their chosen identifier, then select them and send money as you would.

What are the benefits of PayID?

Here’s why it has become such a popular way to send and receive money, especially for everyday payments like splitting bills or moving money:

• It’s fast: Payments happen instantly, even between different banks. No more waiting days for transfers to clear.
  
• It’s secure: Before sending, you’ll see a confirmation of who you’re paying, so you can check it’s going to the right person or business.
  
• It’s simple: No more forgetting your BSB or account number. Just use your PayID, which is much easier to remember.
  
• It’s flexible: You can link your PayID to different accounts and switch it between banks, making it easier to move when you find a better option.

Will it keep my data secure?

Your PayID will either be your mobile number or email address.

Most bank accounts would have asked you for this data when you first opened your account, so you shouldn’t need to supply these details again.

Payments using a PayID can only come from a mobile or online banking of participating banks, credit union and building societies.

This means the same very high level of security that protects your existing bank account payments will also safeguard any payments you make.

It's also optional, plus banks support instant payments using BSB and account numbers. If you’re concerned, speak to your financial institution. 

RentPay X PayID

RentPay is a simple way to manage your rent, helping you stay on track with payments and giving you more control over how and when you pay.

It now gives you access to a unique PayID linked to your account, so you can instantly transfer money from your bank.

Your funds land in your account in real time, ready to be sent. If you’re on a schedule, they’ll also be there ahead of rent day, set to go automatically.

What are the benefits of using it with my rental payments?

If you’re using RentPay, this is a bit of a game-changer.

It lets you pay on time, every time... and on your terms.

No more of those two-day clearance waiting periods you’re used to seeing with direct debits because this is instant, and your money lands in your RentPay account immediately. It's that easy and for your ease of paying rent.

How do you make a payment with it on RentPay?

Making a payment on RentPay is simple.

1. Find your unique PayID email address in your RentPay account.
2. Navigate to 'Settings' and select 'Pay instantly with PayID'.
3. Copy your PayID (e.g. A025342@rentpay.com.au).
4. Open your online banking app to set up the payment.

Note: PayID uses an alias (like a mobile number or email address). The email you see generated in your RentPay account is not a real email address. 

The way you make a payment with PayID might differ depending on which bank you’re using. Each may have slight process variations.

The most important thing is selecting the email address format.

Can I use PayID instead of direct debit on RentPay?

Want to fund your RentPay account with PayID only? Easy.

1. Go to 'Settings' and select ‘Upcoming deposits'.
2. Turn off the automatic deposit toggle.

This will stop it from attempting any further direct debits from your account.

Remember, payments made into your RentPay account with PayID will still be paid from your RentPay account to your agent based on the rent schedule you’ve set up. You can edit this anytime in the RentPay app.

Or, if you prefer, you can make a one-off manual payment from your RentPay account to your agent by using the Pay Agent button on the dashboard.

You might also like:
> 5 ways to boost your financial credibility with a landlord
> The 30% rule: How much can I afford to spend on rent?
> Can I improve my credit score by paying rent on time?