BECS Transition Updates
18 November 2024
18 November 2024
The setting of a conditional target end-date of 2030 for the BECS Framework has generated positive and constructive discussions and initiatives in the industry. These discussions and initiatives will assist AusPayNet to assess the validity of the target end-date against the agreed industry readiness criteria:
- Viability of BECS alternatives
- Member readiness to transition
- End-use adoption
- BECS membership and volume changes.
Some of these initiatives, such as Treasury's targeted consultation on bulk payments and the RBA's Account-to-Account Pricing Study, aim to further explore the challenges associated with a transition off BECS, particularly for end-users; other initiatives, by BECS members and providers of modern BECS alternatives, aim to facilitate BECS members' increased adoption of BECS alternative payment rails.
As the custodian of the BECS Framework, AusPayNet is closely monitoring these initiatives, in addition to performing our own:
Control the future of the framework
We will continually test the validity of the target end-date based on industry’s progress to transition BECS use cases off the BECS Framework. To support AusPayNet in this activity, an industry working group has been convened, with representatives of BECS Tier 1 and Tier 2 Members. The first output of this working group is a member information request that was issued to all BECS members this month, requesting data on our Members' readiness to transition off BECS. The aggregated findings from this information request and data obtained from BECS-related Payment System Market Share (PSMS) and other BECS-related industry initiatives, will inform AusPayNet's updates on the target end-date for the Framework to its Members and key stakeholders.
Collaborate with industry
We continue to collaborate with regulators and industry participants on the BECS transition-related initiatives. In September, the RBA hosted a webinar with financial institutions (attended by AusPayNet) to provide the initial observations of the RBA’s BECS Transition Risk Assessment and next steps.
Coordinate the migration
The process for transitioning away from BECS presents complex challenges for the industry, challenges that cannot be effectively or efficiently addressed by any one industry participant working alone. Recognising this, we have consulted with industry participants and regulators in relation to potential industry-wide coordination to work towards a desired end state for account-to-account payments in Australia. Subject to regulatory approvals, the scope of potential coordination and desired end state will be further discussed and developed in the early part of 2025.
