What is PayID?
In short, it is an identifier that is linked to a bank account. Unlike bank identifiers that we have traditionally used, like a BSB and account number, PayID can be chosen by you, so that you can make it something you easily remember. Many people use a phone number or email address.
So… what is Osko?
You could think of it as rather like BPAY, but you can use it to pay another individual (not just organisations). Say your friend wants to borrow a cab fare home or you want to pay your share of a restaurant meal, but you don’t have cash on you. If both of you have PayID, you can simply transfer the money straight away into their bank account without having to remember your banking details or having access to their bank details. If they don’t have PayID, but they can give you their bank details, you can use that to transfer the money.
But doesn’t it take 3 business days (groan) for the money to arrive?
Not any more! Many, if not most banks and other financial institutions have connected to the NPP – the New Payments Platform – which means that if you have funds available in your account, you are able to almost instantly transfer money to another bank account. About time, too.
Please don’t tell me I need to download ANOTHER App to my phone!
Nope. Osko works with your current online banking platform, so no downloads needed. And it gives you space for a description too, eg “Dinner with Madge” and guess what, even emojis!! How cool is that!
Can I use PayID and Osko now?
You will have to check with your bank. Things are changing rapidly and banks are getting on board with different rules. Some banks allow you to pay to a PayID without Osko, whilst some want you to use Osko if you wish to pay to a PayID.
Like anything new, we will have to use these features to get to know them, but IOHO? It’s about time real-time money transfer happened.