Near-instantaneous payments (NPPs) under the recently launched New Payments Platform will cut down the lag in employer superannuation payments, potentially saving members millions, according to the Commonwealth Bank of Australia (CBA).
A new report from CBA and KPMG has analysed the extent to which the near-instant New Payments Platform will contribute to Australians' superannuation balances.
At present, when it comes to employer superannuation payments, there is a lag of one to three days between initiation and completion, said the report.
CBA cash-flow and transaction services executive general manager Michael Eidel said the NPP could mean "millions of dollars a year" in savings for super members.
Assuming investment returns of 3 per cent, the switch to real-time payments from the average two-day lag could save members $19.2 million annually, according to the report.
"This is above and beyond the savings available for members through greater administrative efficiency for all stakeholders in the system including funds and employers," Mr Eidel said.
"The NPP infrastructure is here, and businesses need to engage with the ecosystem, collaborate and co-design to deliver on the things [that] make a better experience for the super fund member," he said.