NPP Mandated Payments Service – enabling third party payment initiation

7 May 2020
Featured Image

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.


AP+ acknowledges the Gadigal People of the Eora nation as the Traditional Custodians of the lands on which we are based and pays our respects to Elders past, present and emerging. We recognise all Aboriginal and Torres Strait islander peoples ongoing connection to the lands and waters of Australia and thank them for protecting and for their pivotal role in the creation of this beautiful place. Always was and always will be Aboriginal Land.

View our Reconciliation Action Plan

©2023 Australian Payments Plus. ABN: 19 649 744 203  All rights reserved

Back to top Arrow