PayID is proving its worth as a fraud prevention mechanism, according to payment data released by new payments platform operator NPP Australia.

Based on a survey of 2500 consumers and businesses, NPP Australia found that one in four payments to a PayID have been blocked or edited, stopping money being sent to the wrong account.

PayID allows people to send money to the recipient’s mobile number, email address, ABN or ACN. It replaces BSBs and account numbers for “pay anyone” payments.

PayID provides a measure of security because when a person makes a payment to a PayID, they are shown the name of the recipient before making the payment. This process can help identify when a scammer is imitating a person or business in a bid to redirect customer payments.

NPP Australia said there are more than 11 million registered PayIDs in Australia and 17 per cent of payments using the new payments platform are PayID payments.

Use of PayID grew 30 per cent over the past year but the Reserve Bank has told banks it wants to see greater support for the system.

In May, the RBA’s head of payments policy, Ellis Connolly, said the central bank wants the industry to do more to encourage take-up of PayID.

The Australian Banking Association has responded by launching a campaign to raise awareness and encourage consumers and business customers to register for PayID.