Batch payment processing may remain a fixture in Australia’s financial landscape as the Reserve Bank of Australia (RBA) expresses reservations about the industry’s plan to migrate away from the long-standing Bulk Electronic Clearing System (BECS).
RBA’s Risk Assessment: A Cautious Stance
In its recently published Risk Assessment on the Decommissioning of the Bulk Electronic Clearing System, the RBA highlighted serious concerns about transitioning bulk payments—such as welfare and payroll transactions—to the New Payments Platform (NPP) by 2030.
While BECS has been in operation for over 30 years and remains a reliable system, the RBA acknowledges that significant updates are needed to maintain its functionality. At the same time, it recognizes that the NPP offers modern advantages, including 24/7 real-time payments and enhanced messaging standards. However, the report warns that “major challenges” must be addressed before a safe and effective transition can occur.
“The target end state for account-to-account (A2A) payments in Australia has not been defined,” the RBA stated. It pointed out that industry players, government agencies, and end users have yet to establish a shared vision or strategic objectives for A2A payments.
Governance and Coordination Issues
The central bank criticized the lack of a clear governance framework to oversee planning, feasibility analysis, and execution. It emphasized that all stakeholders—particularly end users—must have a voice in decision-making processes to ensure a practical and durable transition.
“This will take time, but emphasis on the speed of decision-making should not trump this priority if a durable solution is to be found,” the RBA cautioned.
Industry Response and Next Steps
Australian Payments Plus (AP+), the operator of the NPP, noted that most bulk files currently processed through BECS contain fewer than 10 payments, which could already be managed through the NPP. For the small number of government and corporate entities handling large bulk payment files, AP+ is developing a Multi-Credit Transfer service to facilitate the transition.
Meanwhile, the Australian Payments Network (AusPayNet), the industry’s self-regulatory body, is collaborating with AP+ and other stakeholders to address the RBA’s concerns. Both organizations have lodged an application with the Australian Competition and Consumer Commission (ACCC) to gain approval for a structured industry-wide planning process.
Pending ACCC authorization, AusPayNet plans to convene roundtable discussions with AP+, the RBA, and the Commonwealth Treasury to define a roadmap for A2A payments. The initiative aims to establish clear deliverables, milestones, and prioritization to guide the future of Australia’s payment systems.
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