What is Osko Payment? Everything You Need to Know

Fast, secure, and easy payment systems are crucial for any business. In the fast-evolving world of digital finance, Osko Payment stands out as a convenient and efficient method for transferring money. If you're wondering, "What is Osko Payment?" and how it compares to other payment methods like PayID, traditional bank transfers, and BPAY, this guide is for you.

What is Osko Payment?

Osko is a payment service provided by BPAY, allowing instant, 24/7 bank transfers between participating banks in Australia. It leverages the New Payments Platform (NPP), which is a state-of-the-art infrastructure that ensures real-time payment processing. This means that when you send money via Osko, the recipient typically receives it within seconds, regardless of the time of day or day of the week.

Osco Payment vs PayID vs Bank Transfer vs BPAY

Osco Payment:

Function: 

Facilitates instant bank transfers between accounts.

Speed: 

Instantaneous (within seconds).

Use Case: 

Immediate person-to-person payments, bill payments, and business transactions.

PayID:

Function: 

A simplified addressing system that links easy-to-remember information (like an email address or mobile number) to a bank account.

Speed: 

Enables real-time payments when used with Osko.

Use Case: 

Simplifies receiving payments without sharing BSB and account numbers. Ideal for person-to-person and business transactions.

Bank Transfer:

Function: 

Traditional method of transferring funds between bank accounts using BSB and account numbers.

Speed: 

Can take one to three business days.

Use Case: 

Regular transfers, typically for less urgent transactions.

BPAY:

Function: 

A bill payment service that allows users to pay bills directly from their bank account using a BPAY Biller Code and a Customer Reference Number (CRN).

Speed: 

Payments are processed in batches and may take one to two business days.

Use Case: 

Paying utility bills, credit card bills, and other types of recurring payments.

Key Differences

1. Speed:

Osko: Almost instantaneous.

PayID: Instant when used with Osko.

Bank Transfer: One to three business days.

BPAY: One to two business days.

2. Purpose:

Osko: Fast transfers for various types of payments.

PayID: Simplifies receiving payments with easy-to-remember details.

Bank Transfer: Standard transfers, especially for non-urgent transactions.

BPAY: Scheduled bill payments.

3. Security:

Osko: Secure, real-time transfers via NPP.

PayID: Adds security by reducing the need to share sensitive banking information.

Bank Transfer: Secure but slower.

BPAY: Secure but dependent on batch processing.

FAQs About Osko Payment

How do I make an Osko payment?

Making an Osko payment is straightforward. Simply log into your bank's mobile app or online banking portal, select the option to make a payment, and choose the Osko option if available. Enter the recipient’s details, such as their PayID or BSB and account number, and the amount you wish to send. Confirm the payment, and it will be processed instantly.

Are there any fees for using Osko?

Most banks do not charge additional fees for Osko payments, treating them the same as standard bank transfers. However, it's always wise to check with your specific financial institution to understand their fee structure.

Which banks support Osko payments?

A wide range of Australian banks and financial institutions support Osko payments, including major banks like Commonwealth Bank, ANZ, Westpac, and NAB. Many smaller banks and credit unions are also on board, offering their customers the benefits of instant transfers.

How fast are Osko payments?

Osko payments are processed in real-time, typically taking just a few seconds for the recipient to receive the funds. This speed is one of the main advantages of using OSKO, making it ideal for urgent payments.

Can I use Osko for business transactions?

Yes, OSKO can be used for business transactions. Its speed and convenience make it a popular choice for businesses that need to make quick payments to suppliers, contractors, or employees. However, it's essential to ensure that the recipient's bank also supports Osko payments.

Conclusion

More than six years have passed since the New Payments Platform (NPP) and the Fast Settlement Service (FSS) were introduced to the public. These platforms, collectively referred to as Osko, now support fast payments around the clock for customers of over 90 financial institutions. Users can include detailed information with their payments and easily specify the payment recipient. While the NPP's implementation was gradual, its usage increased significantly in the latter half of 2019, performing favourably compared to other fast payment systems worldwide. From its public launch on February 13, 2018, to the end of January 2020, the NPP handled approximately 384 million payments, amounting to $344 billion. With various new features in development, the NPP and FSS are set to introduce innovative payment services that will continue to support the Australian economy in the future.