Why Australia’s payments transition is too important to ignore

We are committed to helping our customers make a smooth transition from BECS to the New Payments Platform (NPP), with 2030+ serving as an indicative milestone. CommBank believes this shift presents an exciting opportunity for customers to benefit from faster, more data-rich payments and greater efficiency. As the payments industry continues to evolve, we’ll ensure our customers are well-informed and supported every step of the way. CommBank will continue to lead the conversation, providing clear guidance, tailored support, and proactive engagement to help our customers navigate this change with confidence.

What is the transition?

Australia’s payments industry is undertaking a major transition from BECS, the decades-old direct entry system, to the NPP, a modern real-time payments infrastructure. Industry stakeholders, through AusPayNet (the Australian Payments Network) and Australian Payments Plus (AP+^©), have set a conditional target of 2030+ to retire BECS.

Ethan Teas, Executive General Manager of Payment, CommBank, says the transition away from BECS represents a rare chance for businesses to modernise their operations and better serve their customers.

He adds that the business case extends beyond faster settlement. “Real-time payments open the door to richer data, more efficient reconciliation and improved customer experiences. First movers will gain an edge, while those that wait risk missing out on the benefits.”

According to Teas, the transition is also being driven by competition. “This is a market-led shift, with banks seeking to deliver the best possible outcomes through the NPP. The opportunity is clear, but so is the challenge: firms that fall behind may find themselves at a disadvantage in an economy where speed, transparency, exceptional customer experience and efficient operations are becoming the baseline.”

This move is supported by regulators and government, who see it as essential to keep pace with a digital 24/7 economy. The Reserve Bank of Australia (RBA), in its March 2025 risk assessment, noted that while the BECS has been a highly reliable payments channel for more than three decades, it is increasingly unsuited to the needs of a modern economy.

The plan acknowledged that migrating bulk payments by business and government would present material challenges, particularly for large organisations that have deeply embedded BECS processes.

“Real-time payments open the door to richer data, more efficient reconciliation and improved customer experiences. First movers will gain an edge, while those that wait risk missing out on the benefits” 
— Ethan Teas, Executive General Manager of Payments, CommBank

How prepared are Australian businesses?

Corporate readiness for BECS retirement remains patchy. New CommBank research suggests that corporate Australia has considerable work to do in preparing for the retirement of the BECS system, with limited awareness of the 2030 deadline. More than half of surveyed businesses were unaware that BECS will be phased out.  While financial institutions can make migration near seamless, clients need to think through where they should invest to capture the benefit of real-time payments.

The announcement that cheques will also be withdrawn by 2029 came as a surprise to some respondents, leaving businesses unprepared for two legacy systems to wind up in close succession.

Understanding of the NPP is limited. Fewer than half of respondents said they knew how the platform worked or how it could benefit their operations, and close to 80% are not yet using it. Those who have made the switch, however, report tangible advantages, including faster settlement, richer remittance data, improved reconciliation and 24/7 access to payments. For many organisations, the NPP still feels like an add-on rather than a core system.

Payroll, supplier payments and recurring direct debits were identified as the most important to migrate – either due to complexity or sensitivity – with around 40% of businesses expecting the process to require significant effort. A portion of respondents indicated that migration is not yet on their roadmap, with some not anticipating system readiness until closer to 2027 or 2028.

“Those who have made the switch, however, report tangible advantages, including faster settlement, richer remittance data, improved reconciliation and 24/7 access to payments.” 
— CommBank Research

The roadmap to seizing opportunities

CommBank’s findings highlight both the risks of slow uptake and the opportunity to step in as trusted partners during one of the most significant infrastructure shifts in Australia’s payments landscape.

According to August AP+ research, the shift to real-time payments is not only a compliance requirement but also a chance to unlock efficiencies, strengthen customer relationships and build competitive advantage.

Alison Chang, General Manager, Payments, CommBank says in the report, “Real-time payments improve customer experience while reducing fraud, reconciliation time and working capital constraints.”

The research sets out opportunities and challenges for businesses as the country prepares for the retirement of BECS and a full shift to NPP. In its August 2025 whitepaper Unlocking business opportunities with real-time payments, AP+ highlights six areas where real-time infrastructure is expected to reshape corporate finance.

• Cash flow: 77% of firms report improved cash flow, 72% faster processing, and 70% fewer errors. Real-time payments give businesses 24/7 access to funds and better forecasting.
• Risk and security: Tools such as PayID®, PayTo® and Confirmation of Payee strengthen fraud protection, reduce misdirected payments and limit the need to store sensitive account details.
• Customer experience: Instant settlement supports better service, with utilities resolving payments on the spot and brokers funding accounts in seconds.
• Regulatory drivers: Payday super and the planned BECS retirement make real-time infrastructure essential for business and government payments.
• Strategic opportunities: Early adopters report 33% revenue growth and 24% cost savings, with further potential in cross-border payments, embedded finance and programmable transactions.
• Planning the transition: AP+ advises businesses to start early, focusing on high-value use cases. Firms can take a “lift and shift” approach or pursue broader transformation, using pilots to test before scaling.

Real-time payments improve customer experience while reducing fraud, reconciliation time and working capital constraints.
– Alison Chang, General Manager, Payments, CommBank

The path forward

The retirement of BECS may feel distant, but the work required to prepare for real-time payments is substantial. Early pilots, proof of concepts and engagement with financial partners provide the insights needed to build confidence and scale quickly.

With the right support and a forward-looking strategy, businesses can move towards a faster, smarter and more resilient payments future. To help customers prepare, CommBank is developing a practical guide and webinar on migration pathways and opportunities.

You can watch the webinar recording and download the guide book here.