Wise to invest in Aussie New Payments Platform

September 27, 2021 05:10 PM AEST | By Samta

Wise to invest in Aussie New Payments Platform — Image source: feeling lucky, Shutterstock.com

What is New Payments Platform?

NPP is a distributed switch for individual “Payment Access Gateways”. NPP Australia maintains and develops the platform to ensure it meets the future needs of the industry.

The NPP provides capability for payments to meet simple account-to-account payments to complex businesses including government payments. Over 100 banks, fintech’s and other organisations use NPP for to support real-time payments for various customers.

Impact on the existing payment structure

Joining the NPP will allow the digital payment platform in reducing the current average cost of money transfer both inside and outside of Australia. It will allow real-time payments by eliminating the requirement for middlemen.

Although, Wise didn’t specify the cost reduction percentage, but the company currently charge around 0.56% on Australian transfers. The FinTech platform’s rates are already competitive that offer a reduced cost for Australians, as compared to the charges imposed by major Aussie banks at 4%-6%.

Kaarmann said that Wise’s average cost is already very cheaper than the other banks and the company intends to get as close to zero as possible, as per cost.

The company joined the London Stock Exchange this year and is estimated to conduct between 1%-2% of the global transfers performed by SMEs and individuals.

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