SWIFT, in conjunction with NPP Australia - the organization that oversees the operation of the New Payments Platform (NPP) - have launched a secure testing environment that allows fintechs and other payments providers to test the capabilities of the NPP.

The NPP API sandbox, hosted in the cloud and protected with security, will enable developers to start learning and testing the capabilities of the NPP via APIs.

This development follows the introduction of a new NPP API Framework that opens the door to the NPP's infrastructure in a way that promotes standardization, inter-operability and a consistent experience. Jointly developed by NPP Australia and SWIFT, the API Framework defines the key technical approach and is aligned to ISO 20022 standards.

The initial API Framework for the NPP has documented three sample APIs that NPP participants could make available to the wider fintech and payments community in Australia. These are:

· PayID Resolution Request – to determine the bank account related to a particular personal or business identifier such as a mobile phone number or email address;

· Payment Initiation Request – to instruct the NPP participant to initiate a payment instruction through the NPP; and

· Payment Status Request – to check on the status of an NPP payment

By mimicking these APIs in the NPP API sandbox, external parties will be able to build and test NPP-based solutions in an independent environment that will help to foster innovation and competition for NPP-based payment services. APIs and a testing facility are the two major areas that Australian fintechs have been asking for support in relation to the NPP.

Some commentators note that regulators around the world understand the need for interoperability among financial institutions as they move towards a more open banking model, and the sandbox was built with that in mind. SWIFT, using its position as neutral facilitator for the industry, is at the centre of efforts around the world to avoid fragmentation, isolation, and the needless complexities that could frustrate attempts to build the value-added services that customers want.

Bill Doran, SWIFT head of Oceania, says: "SWIFT has been at the forefront of innovative application of technology within the financial sector for many years, and this API sandbox is a welcome step forward as the industry embraces API technology. The API sandbox for NPP will enable fintechs and corporates to develop their NPP solutions in an independent and secure, zero-footprint environment – before taking their prototypes and customer propositions to the broader market. This should support competition in the financial community in Australia."

Adrian Lovney, CEO of NPP Australia, says: "What makes the NPP stand apart from other real-time payments platforms around the world is that it has been designed to be inclusive and 'open access' – so it's important that companies and innovators are given the chance to understand how they can use its world leading capabilities. This testing environment will enable third party service providers, software developers and participating financial institutions to test and see the NPP's benefits and capabilities in a way that will ensure interoperability and consistency, regardless of the type of innovation they are focused on."