NPP Australia has been working extensively with the industry to develop the Mandated Payments Service (MPS), as outlined in the NPP Roadmap released in October last year.

The Mandated Payments Services (MPS) is core foundational native capability, which will enable customers to authorise third parties to initiate payments from their bank accounts using the NPP.  The capability, governed by a rules framework and liability model, will provide the Australian market with a broad, scalable approach to a third-party payment initiation for real-time account-to-account payments.

The MPS will deliver third party payment initiation combined with persistent customer authorisation for payments to be processed from their bank account, which is recorded with the creation of a digital payment arrangement or a ‘mandate’. The MPS could support a wide range of use-cases, from a better alternative to current direct debit payments to merchant initiated ecommerce and in app payments, and ‘on behalf of’ services conducted by a third party and various fintech applications.

This paper provides an overview of the service, including:

  • Key features and benefits of the MPS
  • How the MPS works
  • How it can be accessed
  • Extensions of NPP API capabilities to support the service
  • Use cases that illustrate how the MPS could be used by third parties to initiate payments

Download the Mandated Payments Service Overview here.