When paying somebody, when you enter a recipient’s PayID, the bank confirms by showing the recipient account holder name.
So in effect, they’ve just implemented a nationwide number-to-name lookup system.
Separate to this, these two banks are pushing it hard. It feels like a land grab, since a single phone number can only be assigned to a single bank.
I'm happy to see real-time payments, though. That will make it easier to bounce money around between savings accounts at different banks, no more waiting 3 days for EFT to clear.
Banks may offer smaller maximum transaction sizes for Osko, or delay the first payment to a new account by up to 24 hours, in an attempt to reduce fraud.
That does sound like a bit of an information leak. I mean the big advantage is that you can make pretty big purchases, like pay for a bicycle or car, in real time without having to wait to see the transfer the next day.
I hope there'll be a way to delete a phone number or email address from the lookup system once it's added, so that you can move it to a different bank.