PayID for C2B Payments

PayID is a secure, easy-to-use payment solution in Australia that enables consumers to make real-time account-to-account payments to businesses using a simple identifier, such as an email address, mobile number, or custom domain. As a growing alternative to traditional payment methods, PayID offers businesses streamlined payment processing with instant settlement and reduced operational costs. This page explores consumer-to-business (C2B) payments with PayID, the roles of participating institutions, and Hello Clever’s PayID solutions.

Check out the video below for a quick introduction to PayID and its benefits.

Personal PayID vs. Consumer-to-Business PayID

There are two main types of PayID used in Australia: Personal PayID and Consumer-to-Business (C2B) PayID. Each type is optimised for different use cases, particularly in terms of transaction reconciliation.

Feature	Personal PayID	Consumer-to-Business PayID
Typical Use	Primarily for peer-to-peer (P2P) transactions between individuals.	Used by businesses to receive payments directly from customers.
Reconciliation	Does not support automatic reconciliation; suitable for simple, individual transactions.	Limited reconciliation; often requires additional tools for tracking.
Identifier	Often linked to a mobile number or email address.	Linked to a business identifier, such as a custom domain or email.
Customer Trust	Trusted for individual transfers due to simple, familiar identifiers.	Custom domains enhance customer trust by clearly identifying the business.

Note: While both types of PayID allow for real-time payments, Consumer-to-Business PayID provides a structured solution for businesses, especially when combined with reconciliation tools to manage higher volumes of payments.

Hello Clever PayID: Streamlined RTP for Businesses

Hello Clever offers a PayID solution specifically designed for businesses to simplify and enhance consumer-to-business transactions. Our PayID service leverages the full benefits of NPP’s real-time payment capabilities and provides features tailored to businesses, such as instant settlement and minimal transaction fees.

With Hello Clever PayID, businesses can:

• Offer Real-Time Payments: Customers pay directly from their bank account using a PayID, and the funds are available instantly.
• Reduce Payment Costs: By eliminating card processing fees, Hello Clever PayID provides a more cost-effective solution for businesses, particularly those with high transaction volumes.
• Maintain Payment Security: Leveraging NPP’s secure infrastructure, Hello Clever ensures each PayID transaction is protected, reducing the risk of fraud.

Shared Responsibility for PayID Transactions

The operation of PayID involves a collaborative framework that includes Hello Clever (as the payment provider), sponsoring banks, and commercial banks. Each of these institutions plays a critical role in facilitating seamless and secure consumer-to-business payments.

Flow and Interaction of PayID Transactions

1. Hello Clever as the Payment Provider:

   • Hello Clever provides businesses with the ability to create and use Consumer-to-Business PayIDs. Through our platform, businesses can receive payments via PayID without requiring customers to enter lengthy bank details. Hello Clever also facilitates the integration of PayID into business workflows, including reconciliation tools to track payments.
   • When a consumer initiates a payment to a business PayID, Hello Clever acts as the initial contact point, authenticating and routing the payment information through the NPP infrastructure.

2. Sponsoring Banks (e.g., Cuscal, ASL):

   • Sponsoring banks, such as Cuscal and Australian Settlements Limited (ASL), play an intermediary role, especially for smaller financial institutions that do not directly participate in the New Payments Platform (NPP). These banks provide access to the NPP, enabling smaller banks and credit unions to connect securely to the PayID network.
   • Sponsoring banks ensure that the payment data remains secure during transmission and that the funds are routed to the correct commercial bank based on the PayID.

3. Commercial Banks (e.g., CommBank, ANZ, Westpac):

   • Commercial banks host the individual and business accounts associated with PayID. When a PayID transaction is initiated, commercial banks verify and debit the funds from the consumer’s account, and then route it to the business’s account in real time.
   • The commercial banks are also responsible for final authentication and clearing of the funds into the business’s account, completing the end-to-end process.

This collaboration between Hello Clever, sponsoring banks, and commercial banks ensures that each PayID transaction is processed securely, that funds are available immediately, and that all parties can rely on the robust infrastructure of the NPP.

New Payments Platform (NPP) and Sponsoring Banks

Australia’s New Payments Platform (NPP) is the infrastructure behind PayID. NPP facilitates fast, secure, and accessible payments, enabling PayID to offer real-time transfers with built-in security features. Various financial institutions play a role in supporting PayID through the NPP, including sponsoring banks like Cuscal and Australian Settlements Limited (ASL).

• Cuscal: A prominent financial services provider, Cuscal offers real-time payments capabilities and provides access to NPP infrastructure, allowing businesses and financial institutions to leverage the benefits of PayID.

• ASL: Australian Settlements Limited also sponsors access to the NPP, enabling credit unions and smaller institutions to connect with PayID and the broader NPP network.

Together, these sponsoring institutions ensure that businesses of all sizes can participate in the NPP and use PayID for fast, efficient consumer-to-business payments.

Using Your Own Domain for Your PayID

For businesses seeking enhanced brand identity and customer trust, Hello Clever supports custom PayID domains. This means you can use your business’s domain name (e.g., pay@yourbusiness.com.au) as your PayID identifier, making it easier for customers to recognise the business they’re paying.

Benefits of Custom Domains

1. Brand Recognition: A custom domain strengthens brand identity and provides customers with confidence that they are making payments directly to your business.
2. Professional Image: Custom domains give businesses a professional appearance, making it clear to customers that they are using an official payment channel.
3. Customer Trust: Using a branded domain in your PayID reduces the likelihood of fraud, as customers can quickly verify the recipient’s identity.

Key Benefits of PayID for Businesses

Using PayID for consumer-to-business payments comes with several benefits that help businesses optimise their payment processes, manage cash flow, and minimise risks.

Auto Reconciliation

While standard PayID payments do not include automatic reconciliation, Hello Clever provides optional tools to facilitate reconciliation for high-volume businesses. Our platform enables easy payment tracking, matching incoming payments to invoices, and providing detailed transaction histories.

Instant Settlement

One of the standout features of PayID is its instant settlement capability. Payments made through PayID are cleared in real time, allowing businesses to access funds immediately upon receiving payment. This rapid availability of funds is especially valuable for businesses that require consistent cash flow and quick access to working capital.

Little to No Chargebacks

Unlike traditional card payments, PayID transactions are final and irreversible once processed, meaning there are minimal risks of chargebacks. This offers a significant advantage for businesses, as it reduces the costs and potential losses associated with chargeback disputes.

Summary of Benefits

• Auto Reconciliation: Streamlined tracking tools help businesses manage incoming payments more effectively, reducing the need for manual checks.
• Instant Settlement: Funds are available immediately upon payment, improving cash flow and operational efficiency.
• Minimal Chargebacks: PayID transactions are final, eliminating chargeback risks and reducing operational costs associated with disputes.