Azupay: An in-depth guide

Last updated February 8, 2024
  1. Introduction
  2. Where is Azupay used?
  3. Who uses Azupay?
  4. How Azupay works
  5. What is the NPP?
  6. What are PayIDs?
  7. Business benefits of accepting Azupay
    1. NPP integration
    2. PayID and PayTo integration
    3. Real-time transaction settlement
    4. Focus on Australian market compliance and integration
    5. Innovative use of technology
    6. Customizable payment solutions
  8. Azupay fees
  9. Azupay security measures
  10. Requirements for businesses to start accepting Azupay
  11. Alternatives to Azupay

Azupay is a digital payment solution based in Sydney, Australia, that handles instant, secure transactions between customers and businesses. The service uses PayID and New Payments Platform (NPP) technology to facilitate real-time bank payments, simplifying the process for both parties. In 2021, Azupay received 10 million Australian dollars in funding, highlighting the business’s growth potential.

Established in 2019, Azupay is a for-profit business specializing in real-time payments for a variety of clients, including governments, banks, billers, and businesses. The business’s key offering is its unique real-time payment processing solution, which is faster than the traditional transaction settlement process that can take several days. This real-time processing capability is a significant advantage for businesses because it helps improve cash flow, minimize fraud, and reduce time spent managing payments.

Azupay implements PayID and QR codes for secure and efficient transactions. PayID simplifies the payment receivables process by eliminating the need to provide Bank State Branch (BSB) numbers and account numbers. This service is the first of its kind in Australia to be powered by the NPP, a technology that speeds up cash flow and reconciliation while reducing transaction fees.

Azupay offers a fast, efficient, and cost-effective solution. Its approach and technology position the service at the forefront of instant payment solutions in the Australian market.

What’s in this article?

  • Where is Azupay used?
  • Who uses Azupay?
  • How Azupay works
  • What is the NPP?
  • What are PayIDs?
  • Business benefits of accepting Azupay
  • Azupay fees
  • Azupay security measures
  • Requirements for businesses to start accepting Azupay
  • Alternatives to Azupay

Where is Azupay used?

Azupay capitalizes on the evolving digital economy in Australia, where customers and businesses are increasingly seeking quick, easy, and safe transaction methods. Regulatory support for innovative payment solutions and the public’s readiness to embrace digital finance have spurred Azupay’s growth and acceptance in Australia.

Azupay’s services are primarily used in Australia’s urban and suburban areas, where digital banking and online transactions are more common. Australia’s advanced banking system, high internet penetration, and widespread use of smartphones create an environment conducive to digital payment solutions such as Azupay. Here’s a closer look at its users and the market:

  • Customer behavior: Australians increasingly prefer digital transactions over cash, partly because of convenience and speed. During 2021 through 2022, the average Australian made around 650 electronic transactions, compared with about 300 a decade earlier. Azupay takes advantage of this trend by providing real-time payment solutions, which appeal to customers who value immediate transaction processing. This shift in behavior is also influenced by a general trust in digital solutions and a willingness to adopt new technologies.

  • Business trends: The Australian market has shifted toward digitalization across sectors. Many businesses are moving away from traditional payment methods to embrace digital and immediate payments. Azupay’s solution fits well with this shift, affording businesses a way to receive payments instantly. This is especially useful for small and medium enterprises (SMEs) that benefit from improved cash flow.

  • Regulatory conditions: The Australian financial sector is well regulated, with strong standards for security and data protection. Azupay operates within this regulatory framework in compliance with local laws. The Australian government’s adoption of the NPP has benefited businesses such as Azupay. The NPP facilitates faster and more versatile payment solutions, allowing Azupay to offer services in pace with these advancements.

Who uses Azupay?

Azupay’s adoption spans a broad spectrum of industries and sectors, primarily because of its processing speed and security and the versatility offered by its PayID and PayTo features. Its appeal cuts across business models, from subscription services to professional invoicing, making it an adaptable payment solution in Australia.

Here’s who uses Azupay and how they use the service:

  • Ecommerce businesses: Ecommerce platforms benefit from Azupay’s real-time payment processing, which improves the customer experience with fast and secure transactions. The integration of PayID and PayTo provides an easy checkout experience, which is an important factor in reducing cart abandonment rates in online shopping.

  • Subscription services: Subscription-based businesses, such as digital content platforms, software providers, and subscription boxes, use Azupay for its PayTo feature. PayTo enables automated, recurring billing, which is important for the subscription model. Variable payments are particularly beneficial for services with tiered pricing models.

  • Utilities and telecommunication providers: Utility and telecommunication businesses use Azupay to simplify billing. The platform’s ability to handle variable recurring payments works well with usage-based billing models, giving customers a convenient way to pay their monthly bills.

  • SMEs: These enterprises, including local retailers, service providers, and restaurants, choose Azupay for its straightforward setup and user-friendly interface. The real-time payment feature helps them manage cash flow efficiently.

  • Professional service providers: Lawyers, accountants, and consultants find Azupay’s immediate payment processing beneficial for one-off invoicing. The platform’s security features and compliance with Australian financial regulations add trust and professionalism to the transaction process.

  • Nonprofits: Charities and nonprofits use Azupay for fundraising and donations. Donors can easily make payments via PayID, and transactions process immediately, making it an attractive option for nonprofits trying to increase donations.

  • Local governments and councils: Local government bodies and councils use Azupay for collecting rates and charges. The system’s ability to handle large volumes of transactions and its integration with the country’s financial system make it a practical choice for public sector entities.

  • Event organizers and ticketing platforms: For event organizers and online ticket marketplaces, Azupay’s immediate transaction settlement is important. It provides a reliable way to manage ticket sales, in which timing and quick processing are key.

  • Healthcare providers: Healthcare clinics and practitioners use Azupay to process patient payments. The system’s simplicity and speed are advantageous for busy healthcare environments where efficient payment processing is needed alongside providing care.

How Azupay works

Azupay works with the NPP, a technology that enables instant bank-to-bank transfers in Australia. Here’s a breakdown of how Azupay functions:

  • Setup and integration: To start using Azupay, businesses must set up their account and integrate Azupay with their systems. These might include their accounting software, ecommerce platform, or other payment systems.

  • PayID generation: Once Azupay is set up, the business generates a PayID for each transaction. A PayID is a unique identifier for payments, and it can be something simple such as an email address or a phone number. This PayID replaces traditional bank account details, making the process simpler and more secure.

  • Invoice and payment request: When a business solicits payment, it sends an invoice or payment request to the customer. This request includes the PayID and often a QR code linked to the payment amount and details.

  • Customer payment process: The customer can then pay by scanning the QR code with their mobile device or using the PayID through their bank’s app or website. The process doesn’t require entering BSB and account numbers, making it quicker and reducing the chance of errors.

  • Instant payment processing: When the customer completes the payment, Azupay processes the transaction in real time. The funds are transferred from the customer’s bank account to the business’s account almost instantly, unlike traditional bank transfers that can take days.

  • Reconciliation: Azupay also supports reconciliation. When a customer pays using a specific PayID, it can be automatically matched to the corresponding invoice. This feature cuts down on the administrative effort needed to match payments with their corresponding invoices.

  • Security features: The system is designed with security in mind. Using PayID and real-time processing reduces the risk of fraud. Because customers don’t need to enter sensitive card details, there’s also less risk of financial data being compromised.

Azupay simplifies the payment process with PayIDs and QR codes, which enable instant payments, reduce the administrative workload, and maintain a high level of security.

What is the NPP?

The NPP is an advanced payment infrastructure developed for the Australian financial market. It represents a major advancement in the way money is transferred between people, businesses, and institutions in Australia. Here are its key features:

  • Instant payments: The NPP can process payments almost instantaneously, 24/7, including on weekends and public holidays. This is a substantial shift from traditional banking systems, where transfers could take several days—especially over nonbusiness days.

  • PayID: The NPP introduced PayID, a system that allows users to link their bank accounts with identifiers such as a phone number or email address. This means payments can be made without the recipient’s BSB and account number.

  • Data-rich transactions: The platform allows for more data to be sent with payments. This means businesses and customers can include detailed descriptions or invoice information with their transactions, which helps with accounting and reconciliation.

  • Accessibility: The NPP is designed to be widely accessible. It’s supported by numerous Australian banks, credit unions, and financial institutions, making it available to many users across the country.

  • Flexibility for developments: The platform is adaptable, providing a foundation for improvements in payment technology. This includes potential integrations with new technologies and services.

  • Security: The NPP maintains high security standards, which include features such as encryption and fraud detection mechanisms to protect users’ financial data.

What are PayIDs?

PayID is a feature of the NPP designed to make sending and receiving money easier and more intuitive. Here’s what to know about PayIDs:

  • Simplified identification: PayID allows users to link their bank account with an easy-to-remember identifier such as a phone number, an email address, or an Australian business number (ABN). This identifier is used in place of traditional BSB and account numbers.

  • Ease of use: With a PayID, making and receiving payments becomes easier. Instead of entering a long string of numbers, users can send money using the recipient’s PayID, which is often more memorable and less prone to entry errors.

  • Increased security: PayID can boost transaction security. Users don’t have to share their bank account details with others, and they can confirm the recipient’s name before finalizing the transaction, reducing the chance of sending money to the wrong account.

  • Widespread adoption: Most Australian banks and financial institutions support PayID as part of their services, making it a widely available feature for users across banking platforms.

  • Speed and convenience: Transactions that use PayID are processed quickly, often instantly, through the NPP. This speed is particularly beneficial for urgent transactions or for businesses that require prompt payment.

  • Versatile transactions: PayID can be used for a variety of transactions, from splitting bills among friends to receiving payments for goods and services. It’s suitable for personal and business use.

Business benefits of accepting Azupay

Azupay’s benefits include its integration with the advanced Australian payment infrastructure; emphasis on real-time, data-rich transactions; compliance with local financial practices; technological adaptability; and customizability. These factors contribute to an efficient, secure payment platform that works in tandem with the nuanced needs of modern businesses, especially those operating within or targeting the Australian market. Here’s a look at the benefits Azupay offers businesses:

NPP integration

  • Strategic difference: Azupay relies on Australia’s NPP, the innovative infrastructure designed for speedy, data-rich transactions. The NPP is deeply embedded in the Australian financial system.

  • The benefit: For businesses, this means transactions are fast and facilitate a richer exchange of data. This can be valuable for businesses that rely on detailed transactional data for analytics and to provide personalized customer services.

PayID and PayTo integration

  • Strategic difference: Unlike traditional bank transfers or card-based systems, PayID and PayTo offer an efficient way of processing payments, balancing ease of use with robust security.

  • The benefit: This integration allows businesses to reduce friction in the payment process, potentially decreasing dropout rates. PayTo’s recurring payment feature allows for different payment amounts and is beneficial for businesses with subscription models or variable billing, often providing more versatility than traditional payment methods.

Real-time transaction settlement

  • Strategic difference: Azupay’s real-time processing goes beyond fast payment clearance. It represents a shift toward instantaneous monetary exchanges, which is particularly relevant in fast-paced business environments.

  • The benefit: Immediately settling transactions improves a business’s cash flow management, allowing for more agile financial planning and a faster response to market changes.

Focus on Australian market compliance and integration

  • Strategic difference: Azupay complies with the specific financial regulatory environment in Australia. This focus gives it an advantage in understanding and working through the complexities of the country’s financial systems and customer behavior.

  • The benefit: Businesses benefit from a payment system designed with local regulations at the forefront, reducing the risk of noncompliance. Being a part of the local system also improves customer support and an understanding of market-specific challenges and opportunities.

Innovative use of technology

  • Strategic difference: Azupay has adopted advanced technologies in payment processing, such as integrations driven by application programming interfaces (APIs) and data encryption. These technologies position it as a forward-thinking player in the fintech sector.

  • The benefit: Businesses will have access to a platform that integrates payment systems with existing digital infrastructure. This can improve operational efficiency and provide a more cohesive customer experience.

Customizable payment solutions

  • Strategic difference: Unlike some one-size-fits-all platforms, Azupay allows for some customization in its payment solutions, where businesses can tailor the process to their needs.

  • The benefit: Businesses can create a payment experience that works for their brand and customer engagement strategies, potentially improving customer satisfaction and loyalty.

Azupay fees

The service’s fee structure is straightforward and advantageous for businesses that want to reduce transaction-related expenses. Here’s a look at the fee structure and the associated benefits:

  • Low, flat per-transaction fee: Azupay charges a flat fee per transaction, not a percentage of the sale. This approach can greatly reduce transaction costs for businesses—especially when compared with the average merchant service fee (MSF), which is typically percentage-based.

  • No transaction surcharges: The service does not charge transaction surcharges, which can reduce overall sales costs. This also means businesses can avoid passing on these costs to customers or offer discounts.

  • Real-time settlement: Funds are received in real time because transactions settle 24/7, 365 days a year. This immediate settlement is beneficial for improving cash flow and offers greater payment flexibility.

  • Simplified reconciliation process: By integrating with accounting software and automating the reconciliation process, Azupay reduces time-consuming administrative tasks related to transaction matching.

  • Easy integration with sales channels: Azupay also offers simple integration options for several sales channels, supported by three APIs that control all aspects of the payment process.

  • Secure transactions: Using the customer’s bank’s security processes, Azupay validates all transactions. It also uses real-time NPP fraud monitoring and detection systems for more security.

  • Use of QR codes: Azupay relies on QR codes to initiate payments. These codes can be displayed at online checkouts, on electronic bills, or on any internet connected device. Each code has a unique PayID for secure, fast processing.

Azupay security measures

Because it operates in Australia, Azupay is subject to the regulations set by the Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA). These bodies enforce strict standards for financial services, which focus on the integrity of financial markets and protecting customers.

Key regulations include the Australian financial services (AFS) license requirements, which mandate compliance with financial services laws and maintenance of competent staff, along with other financial resource requirements. Azupay must also comply with the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF), which includes strict standards for customer identification, transaction monitoring, and reporting suspicious activities.

Beyond these protocols, Azupay incorporates a range of security features to protect its users and their transactions, including:

  • Payment system compliance: Because Azupay uses NPP, it must adhere to the operational and security standards set by the platform. This includes real-time gross settlement (RTGS) systems that settle payments instantly and irrevocably, reducing credit and liquidity risks.

  • Data security standards: Azupay complies with the Payment Card Industry Data Security Standard (PCI DSS). This standard includes requirements for network security, data protection, vulnerability management, access control measures, monitoring, and testing networks.

  • Encryption and data protection: Azupay uses encryption to protect data in transit and at rest. This includes industry-standard protocols such as the latest TLS1.2 encryption technologies and public/private keys to provide access to its payment orchestration engine.

  • Fraud detection technologies: Azupay employs real-time NPP fraud monitoring and protection. These systems are designed to analyze transaction patterns and flag anomalies that could indicate fraudulent activity.

  • Customer verification with PayID: PayID operates under guidelines that require customer verification. This process is known as Know Your Customer (KYC), which involves confirming the identity of customers through government-issued IDs, addresses, and biometric verification.

  • Audit and compliance checks: Routine internal and external audits are part of maintaining compliance. Azupay conducts these audits to ensure all operational, financial, and security practices are in line with regulatory standards and industry best practices.

  • Customer protection measures: Under Australian law, financial service providers such as Azupay must have measures in place to address customer complaints and resolve disputes. These measures must be in accordance with guidelines set by organizations such as the Australian Financial Complaints Authority (AFCA).

  • Two-factor authentication (2FA): If Azupay uses 2FA for customer accounts, it typically involves a combination of something the customer knows (such as a password) and something they have (such as a mobile device for receiving SMS codes).

Requirements for businesses to start accepting Azupay

To start working with Azupay and integrate its payment solutions into their operations, businesses should follow these steps:

  • Learn about Azupay products: Businesses need to understand the range of products Azupay offers. This involves getting familiar with its real-time account-to-account payment systems and determining which of the platform’s user experience (UX) apps and configurations align with the business’s specific needs.

  • Select the appropriate UX app: Azupay provides different UX apps designed for specific payment requirements. Each app has multiple variations for distinct customer experiences and benefits. Businesses should choose the app that best fits their transaction and customer-interaction model.

  • Complete business requirements: Before integrating with Azupay, businesses must complete certain requirements. These include signing a nondisclosure agreement (NDA), providing detailed information about the business, and possibly signing a proposal if the business expects high payment volumes or has complex requirements. These steps are necessary to access Azupay’s User Acceptance Testing (UAT) environment.

  • API integration and onboarding: Businesses choose which Azupay apps to use and request onboarding through the Azupay help center. This step involves understanding the specific APIs required for the chosen apps and setting up the necessary API keys and client ID for integration.

  • Configuring the PaymentRequest API: The integration process relies on the PaymentRequest API, which creates the PayIDs customers use to send payments. Businesses must issue API calls with parameters such as client ID, transaction ID, and payment amount. Then PayIDs can be used for managing payments.

  • Customizing the customer experience: Businesses can fine-tune the payment experience to suit their needs. This includes customizing the PayID, setting time and amount limits for payments, and updating PayID conditions as required.

  • Handling payments and status updates: Once integrated with Azupay, businesses need to manage payments and keep track of their status. This includes handling incorrect payments and ensuring the PayID status is monitored and updated accordingly.

  • Merchant dashboard management: Throughout the process, businesses will use Azupay’s Merchant Dashboard to control their account, view transactions, and manage cash flow.

For more detailed instructions on how to start working with Azupay or to ask specific questions, businesses should consult Azupay support and developer resources.

Alternatives to Azupay

In markets where Azupay operates, primarily in Australia, businesses seeking alternatives to Azupay have many options. Each of these alternatives has its own features, pricing structures, and integration capabilities that cater to different business requirements. The choice of a payment solution depends on the type of business, transaction volume, desired features (such as recurring billing, POS transactions, or mobile payments), and the location of the business and its customers.

Alternatives to Azupay include services that specialize in certain aspects of financial transactions (bill payment; buy now, pay later; direct debit; peer-to-peer payments; and invoicing and accounting), digital payment platforms, and payment providers such as Stripe that offer a comprehensive set of services.

A global leader in online payment processing, Stripe offers a suite of payment services that include card payments, subscriptions, and invoicing. It’s favored for its developer-friendly integration and comprehensive set of APIs that allow for a high level of customization. To learn more about Stripe and get started, go here.

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