TECHNOLOGY

Australian banks push PayID as weapon against scams

Australian banks push PayID as weapon against scams

Australian banks are going old school to fix a new-school problem. This week, the Australian Banking Association launched a public awareness campaign called "Australian Banks: Working to Protect You" — and it's pushing one simple message: use PayID.

"We encourage customers to find out more about PayID," ABA CEO Anna Bligh said. "A good place to start is the website payid.com.au." The site links directly to participating banks, showing customers exactly how to sign up.

Key Details

PayID isn't new. It's been around since February 2018, letting customers link a phone number, email, or ABN to their bank account. Once linked, paying someone becomes as easy as typing in that identifier — no BSB or account number needed. The ABA says more than 11 million PayIDs are already registered across the country.

But the association wants more. "PayID is free to register, easy to use," Bligh said. Customers can hold multiple PayIDs, which is useful for businesses that want separate identifiers for different accounts. The campaign also highlights that 17% of all real-time payments in Australia now move via PayID. The goal is to accelerate that number.

Here's the thing: PayID doesn't stop scams by magic. It adds verification. Your bank shows you the name behind the identifier before you send. If a scammer says they're your electrician but the name comes back as "Joe's Crypto Casino," you get a moment to think.

Industry Impact

Scam losses are staggering. Australians lost over $2 billion to scams in 2021, according to the ACCC. Banks have been copping heat from regulators and customers to do more. But instead of rolling out complicated new security layers, they're betting on adoption of an existing feature. That's a reasonable strategy — and a lower-cost one.

The timing makes sense. Real-time payments are growing fast, and fraudsters love them because there's no cooling-off period. PayID gives banks something they never had before: a way to confirm a payee's identity right at the moment of payment. It's not foolproof, but it's friction — and friction is the enemy of a scammer.

I've seen my fair share of dodgy payment requests. Most rely on panic, not sophistication. A campaign that encourages people to learn about PayID is a start, but it's only half the battle. Scammers will adapt. The banks know this. That's why they're also pushing real-time monitoring and better customer education.

Will this campaign move the needle? The ABA thinks so. And honestly, it's better than a passive "be careful" poster. The shift toward PayID is already happening — 17% of real-time payments is up from near zero a few years ago. If this campaign bumps that to 25% or 30%, it could genuinely dent scam success rates.

One thing's for sure: the banks aren't waiting for regulation to force their hand. They're using the tools they already have and asking customers to join them. That's a pragmatic response to a serious problem. And in the payments world, pragmatism wins.

Official Source: https://www.ausbanking.org.au/australian-banks-encourage-customers-to-use-payid-to-combat-scams