AusPayNet welcomes RBA Risk Assessment on the intention to decommission BECS
MEDIA RELEASE
11 March 2025
AusPayNet welcomes RBA Risk Assessment on the intention to decommission BECS
Australian Payments Network (AusPayNet), the self-regulatory body for the payments industry in Australia, has welcomed the Reserve Bank of Australia’s (RBA) Risk Assessment on the intention to decommission the Bulk Electronic Clearing System (BECS).
Earlier today, the RBA released its report including 20 recommendations to address the risks associated with the intention to decommission BECS by a target end date of 2030.
AusPayNet is working with Australian Payments Plus (AP+) – the operator of the New Payments Platform (NPP) – and its wider membership, which includes 87 banks and fintechs that are members of the BECS Framework, on a program of work that will address the recommendations made in the report.
AusPayNet and AP+ have recently lodged an application for authorisation with the ACCC, which is currently undergoing public consultation and will enable the industry – with input from the RBA and government – to develop a clear vision regarding the future of account to account payments system in Australia. It will also help establish high-level deliverables and milestones for achieving that vision, including clear prioritisation and sequencing.
Subject to ACCC authorisation, AusPayNet will host and facilitate Roundtables between AusPayNet, AP+, the RBA and the Commonwealth Treasury to achieve these outcomes. The Roundtables will ensure that members of BECS and NPP, operators of other modern alternatives to BECS, and end user groups are appropriately engaged through the process.
“As the custodian of the BECS Framework, AusPayNet is committed to ensuring that the transition – including the risks identified by the RBA – is managed responsibly with no disruption to the efficient and secure flow of essential payments,” said Andy White, CEO of AusPayNet.
BECS is currently Australia’s primary system for account to account payments. Australians rely on BECS for a wide range of critical payments including welfare, pension, salary and bill payments.
In November 2023, AusPayNet set a target end date for BECS of June 2030 following extensive consultation with BECS Members and key end users. The consultation concluded that BECS has served the payments system well over the past 30 years but lacks critical features that are becoming increasingly necessary and available through modern alternatives like the NPP, including payee look-up and confirmation, 24/7 clearing and settlement in near real-time, and data-rich messaging and monitoring that is consistent with global standards, enabling cross border interoperability.
Since the target date was set, AusPayNet has put in place a program to monitor the progress of the industry on key dimensions of the transition away from BECS, including viability of modern alternatives like the NPP and end user readiness, to inform its ongoing assessment of the target end date. AusPayNet also continues to consult and collaborate with BECS members on their individual plans and engagement with their customers (i.e. end users).
“The RBA’s risk assessment released today is an important milestone in this process, providing a view of the progress made over the last 18 months and the areas where the industry needs to focus or accelerate efforts. We thank the RBA for engaging us in their risk assessment process and look forward to working with our members on the RBA’s recommendations for the road ahead,” Mr White added.
Background
AusPayNet is the industry association and self-regulatory body for the Australian payments industry. We manage and develop standards and guidelines governing payments in Australia. AusPayNet currently has more than 150 members including financial institutions, payment system operators, major retailers and financial technology companies. Our purpose is to create confidence in payments by: setting enforceable industry standards for a safe, reliable and effective payments system; leading transformation in payments to drive efficiency, innovation and choice; and being the home for ecosystem collaboration and strategic insight.
As part of payments modernisation, AusPayNet is also leading work on the wind down of the cheques system, the migration of domestic and cross-border payments to the ISO 20022 messaging format, and the upgrade of the Australian card payments system’s security to the Advanced Encryption Standard.
As a key participant in the National Anti-Scam Centre and through its own Economic Crime Forum, AusPayNet is also supporting the Government’s strategy to combat scams and online fraud.
