What is the New Payments Platform (NPP) and why should billers care?

What is the NPP?

The New Payments Platform (NPP) is Australia’s modern payments infrastructure. Designed for speed, transparency, and flexibility, it enables real-time payments between individuals, businesses, and government. It represents a leap forward from traditional bank transfers, which rely on batch processing and can take days to clear.

Why should councils and utilities care?

The way your community wants to pay is changing. Ratepayers today expect the same seamless, immediate experiences they get from shopping, banking, and rideshare apps. Outdated payment systems—manual bank transfers, rigid direct debits, and paper-based forms—don’t cut it. They frustrate customers and create unnecessary admin for your teams.

For councils and utilities managing rates collection, service fees, permit payments, or licensing, the NPP opens the door to faster cash flow, fewer dishonoured payments, and less administrative overhead. And it doesn’t require a system overhaul. Through platforms like Payreq, councils can unlock the benefits of the NPP with minimal change to their existing workflows.

PayTo vs direct debit: A modern alternative

At a glance, PayTo might seem similar to traditional direct debit—but the differences are game-changing.

Direct debit:

• Requires paper forms and bank account details
• Takes days to set up
• Gives customers little visibility or control
• Commonly leads to failed payments

PayTo:

• Authorised by the customer in their banking app
• Instant setup and real-time approval
• Allows pausing, cancelling, or editing at any time
• Sends customers notifications before every payment

For councils, PayTo means fewer failed payments, fewer disputes, and less time chasing people. For residents, it means confidence, flexibility, and ease of use.

Why this matters now

Australia’s major banks support PayTo, and awareness is growing fast. Councils that act early can set the pace—offering a better payment experience and cutting overheads at the same time. It’s not just a technology upgrade. It’s a strategic advantage.

Find out more about Payreq’s flexible payment solutions including PayTo and PayID.