American Express (Amex) has unveiled a new, near-instant credit card repayment capability, leveraging the New Payments Platform’s (NPP’s) PayID function.

Co-developed with Aussie payments provider Cuscal, the new ‘American Express Card PayID’ service enables Amex cardholders to pay off their credit card debt in near-real time by directing payments to a dedicated PayID – one that users can create specifically to receive Amex credit card repayments.

The service promises for Amex consumer and small business card users a “faster, simpler and more secure way” to repay charges directly from their bank account. With transfers settled within minutes, Amex said the service provides a number of benefits for its users, including the near-instant freeing-up of credit, repayment alert signals once payments are made, and an added ‘confirmation step’ to verify users are paying their Amex cards.

To use the service, Amex cardholders must create unique PayIDs that they can save as a payee in their bank’s digital banking channel.

Once an Amex cardholder makes a payment from their bank to this PayID, the payment is routed – in real-time via Cuscal through a connected API – to their American Express Card account, creating “an instant and seamless payment and a better customer experience”, Amex said.

Amex noted that credit card repayments appear on the customer’s online statement under Card Transactions within 24 hours.

A PayID is a unique identifier (typically an email address or mobile number) for payees to receive payments via the NPP fast payments rail. PayIDs serve as an alternative to the traditional BSB and account number, with payees able to confirm details of payments receivers before a transaction is made.

“This market-first innovation is possible as a result of the unprecedented industry collaboration that has led to the creation of the New Payments Platform and through our partnership with Cuscal,” said Adam Roberts, vice president, emerging products and partnerships at American Express.

Katrina Stuart, general manager, business payments at AP+, which oversees the NPP, said: “We’re thrilled to see the American Express and Cuscal partnership drive innovation using the NPP to deliver clear benefits to consumers and small businesses.”

“It’s this type of strategic and creative thinking that the NPP and PayID were designed to enable and will help ensure Australia is at the forefront of a world-class payments system.”

Bianca Bates, chief client officer and deputy chief executive at Cuscal said: “We are really pleased to be working with American Express who were looking for innovative ways to leverage Cuscal’s capabilities that have been developed to support all types of bank and non-bank financial institutions and payment-centric organisations.”

The service is limited to Amex consumer and small business card holders, with additional, supplementary, or corporate cards not currently eligible for the American Express PayID service.