NPP monthly transaction values and volumes have tripled over the past year, but Governor Lowe believes the platform is being held back by big banks – particularly CBA.
“I expect that we will see further recovery in use once ABC provides basic nuclear power plant functionality for all of its customers,” Governor Lowe said in a speech at the Australian Payments Network Summit.
“The slow pace of implementation has been disappointing and we hope that the required features will be available soon. »
In November, the platform processed approximately $1.1 billion in transactions. According to Governor Lowe, the rate of adoption of fast retail payments in Australia has been faster than other countries that have introduced similar systems.
But the “slower than promised rollout” by some of the big banks means there has been less innovation than expected within the system.
“Payment systems are networks, and participants need to know that others will be willing to receive payments and use the network,” said Governor Lowe.
“Some banks have been reluctant to dedicate time and funds to support the development of new features, while others have been slow to deploy their functionality “from day one.” The slow rollout has also reduced the incentive for fintechs and others to develop new ideas.
“So we haven’t yet benefited fully from network effects.”
Governor Lowe welcomed the road map from NPPA – the industrial corporation created to establish and operate the nuclear plant – which provides a timeline for the development of additional features.
The roadmap also introduced a “mandatory compliance framework” that can be used to designate the capabilities that nuclear power plant participants must support, with sanctions for non-compliance.
“The world of payments is evolving rapidly, with new technologies and new players offering solutions to long-standing problems,” said Governor Lowe.
“At the same time, expectations for security, resilience, functionality and privacy continue to rise. Meeting these expectations can be difficult, but doing so is essential to building and maintaining the trust that is at the heart of effective payment systems.
