How PayID is Revolutionizing Instant Payments for Merchants

Published 22 July 2026 · LocalPay Team

What Is PayID?

PayID is Australia's answer to frictionless bank transfers. Instead of asking customers to copy-paste a 6-digit BSB and 9-digit account number (and hoping they don't make a typo), PayID lets them pay using something they already know — a mobile phone number, email address, or ABN.

Built on the New Payments Platform (NPP) and powered by Osko, PayID settlement is near-instantaneous — funds arrive in seconds, 24/7/365.

5 Merchant Benefits of Accepting PayID

• Instant settlement: No more waiting 2-5 business days for funds to clear. PayID payments land in your account within seconds, dramatically improving working capital and cash flow visibility.
• Zero data entry errors: When customers type BSB and account numbers, one wrong digit means a failed or misdirected payment. PayID eliminates this entirely — it's a simple lookup, not a transcription exercise.
• Higher checkout conversion: Asking customers to enter 15 digits discourages purchases. A familiar phone number or email? That's frictionless. Familiar payment options reduce cart abandonment significantly.
• 24/7 availability: Unlike traditional bank transfers that queue overnight, PayID processes on weekends, public holidays, and at 3am — whenever your customer is ready to pay.
• Bank-grade security: PayID operates within the customer's own banking app, authenticated by their bank's security. There's no card number to steal, no expiry to skim — it's a push payment with zero chargeback exposure.

PayID + BPAY: The Complete Merchant Stack

Smart merchants pair PayID for everyday transactions (under AUD $1,000) with BPAY for high-value billing (up to AUD $50,000). Together, they cover the full spectrum of Australian consumer payment behaviour — from a quick coffee shop PayID tap to a BPAY invoice for a AUD $12,000 wholesale order.

LocalPay provides both rails through a single integration. One API, one reconciliation dashboard, two powerful Australian payment methods. No separate gateways, no fragmented reporting.