BECS Transition Updates
22 February 2024
22 February 2024
AusPayNet’s extensive three-year consultation on the strategic direction of the Bulk Electronic Clearing System (BECS, also known as Direct Entry) concluded in 2023. This consultation, which involved over 85 entities and included BECS Members as well as other relevant key stakeholders, identified that the payments industry supports a transition away from the BECS Framework to more modern payment systems.
Although BECS has served the payments system well over the past 30 years, it lacks critical features that are becoming increasingly necessary and available through modern alternatives, namely:
- payee look-up and confirmation
- 24/7 clearing and settlement in near real-time
- data-rich messaging and monitoring with ISO compatibility.
BECS Members also indicated no appetite to invest in addressing these limitations, given the significant and ongoing investment in the development and growth of more modern alternatives that are better suited to meet new and emerging needs of end-users and the Australian payments system.
To help focus industry attention and effort, AusPayNet has communicated a target end-date of June 2030 for closing the BECS framework. This date was considered reasonable by the majority of BECS consultation participants but will be reviewed once Treasury has completed its detailed consultation on bulk payments with businesses and government, expected later this year.
Retiring a significant legacy clearing system like BECS, that has traditionally been the payments workhorse for low-cost transactions, will not be without its challenges. AusPayNet is committed to ensuring that the industry’s transition away from the BECS framework is managed responsibly, with no disruption to the efficient and secure flow of direct entry payments. To this end, AusPayNet has commenced mobilisation activities to closely monitor the industry’s progress and the validity of the BECS framework’s target end-date.
AusPayNet will continue to provide regular updates on the progress of this transition.
