COIN

The COIN is next generation connectivity for Australian payments.

The Community of Interest Network (COIN) is a high availability, managed network for multilateral secure transmission of payment files between payments participants.

Designed as collaborative core infrastructure for the future of Australia’s low-value payments, the COIN provides an alternative to point-to-point connectivity between payments participants.

Currently the COIN provides network services and connectivity for our frameworks for cheques, direct entry, and domestic cards. It also provides the network for BPAY bill payments.

The COIN operates independently from our other payments framework and is open to all participants in the payments system. We provides the rules, procedures and decision-making framework enabling participation in the COIN.

Telstra provides the IP-based virtual private network for the COIN.

High Value

"High-value payments total around $122 billion every day, but only number about 38,000 transactions."

High value payments are generally made between financial institutions either for themselves or for their corporate customers including overseas banks.

Payments made through the system are mainly for the Australian dollar leg of foreign exchange transactions. High-value payments:

are time-critical and irrevocable
have an average value of close to $3.2 million
total more than $122 billion every day, but only number around 38,000 transactions¹

AusPayNet sets the rules and procedures for the High Value Clearing System (HVCS). The objective is to provide a best practice, efficient and highly secure electronic payments system for the Australian finance industry.

In February 2020, the RBA appointed AusPayNet as the central coordination authority in a major industry program to migrate HVCS messaging to ISO 20022. More information is available here.

¹12 months to end April 2021

Direct Debits & Electronic Transfers

The direct entry system carries the majority of consumer payments by value.

Direct entry is a convenient, safe and reliable way to send and receive payments.

The system is commonly used by businesses to make recurring, automated payments to and from everyday transaction accounts. These include salary and welfare payments (direct credits), insurance premiums and utility bills (direct debits), and internet (Pay Anyone) banking services.

To make and collect payments, a business needs to be approved as a direct entry user by a financial institution. To set-up direct debit arrangements, customers complete a Direct Debit Request (DDR) authority with the business that will be collecting payments from their account.

We coordinate the rules and processes for direct entry payments through the Bulk Electronic Clearing System (BECS). Other payment systems for electronic transfers are operated by BPAY and PayPal.

Cheques

Cheque use is declining rapidly as Australia's digital economy takes hold.

In Australia, like in other countries, cheques are in long-term decline. Our lives are increasingly digital and as more services move online, consumers and businesses are moving away from cheques.

Cheque use in Australia has dropped by 83% over the last 10 years. Only small numbers of cheques are still used by certain sectors in the community.

We are tracking the decline of cheques to ensure all Australians:

have access to electronic payments as cheques become scarcer and more difficult to use
can share in the benefits of the digit economy

We coordinate rules and arrangements for cheque clearing through the Australian Paper Clearing System. Through the APCS Management Committee, our work includes:

ensuring the operation of effective systems, policies and procedures for exchanging cheques between financial institutions
maintaining standards and specifications for the design and security of cheques

Cash

Fewer Australians are paying with cash than ever before with cash now accounting for just 27% of all payments.

Fewer Australians are paying with cash than ever before. The digital economy is creating a less-cash society, with cash now accounting for under 27% of all consumer payments.

But Australians continue to use cash for a variety of reasons. In this context, the Reserve Bank of Australia (RBA) has introducing new banknotes with tighter security features, a tactile feature to help the vision impaired and a world first design.

We set up the Next Generation Banknote Support Project in September 2015 to monitor the industry’s readiness and ensure minimal disruption as each banknote denomination is issued into circulation. The RBA issued the first banknote in the new series on 1 September 2016, with all denominations now in circulation - $5, $10, $20, $50 and $100. The new $100 banknote was issued on 29 October 2020.

The Reserve Bank of Australia has sole responsibility for issuing notes which are printed by a wholly owned subsidiary of the Bank.

Through the Australian Cash Distribution and Exchange System (ACDES), we manage the exchange and distribution of bulk cash between the four banks that supply cash to the community.

Cards

Payment cards have overtaken cash as the most frequently used payment method in Australia.

Debit cards and credit cards are the most common payment method used by Australians today.

Most in-person payments are ‘contactless’, online shopping is increasingly popular and mobile payments are gaining traction.

Financial institutions issue debit cards and credit cards supported by the international card schemes (Visa, MasterCard), as well as debit cards supported by the domestic debit card scheme, eftpos Payments Australia. Charge cards are issued by American Express, Diners Club, JCB and others.

Dual-network debit cards have point-of-sale debit functionality from the domestic debit card scheme network and an international card scheme network. Merchants are able to send a dual-network contactless debit card transaction via the debit network of their choice, for example, because that network offers the lower cost for that transaction.

More information about merchant routing is available here.

Network

Australian Payments Network is at the heart of the payments system.

AusPayNet oversees the systems that support much of Australia’s payments infrastructure, and we bring together a community of financial institutions, payment service providers, technology companies and regulators.

We manage systems for cards, cash, cheques, electronic funds transfer and high-value payments, through the development and management of standards, rules and guidelines.

We drive collaborative decision-making among the organisations and individuals that we bring together in:

management committees dedicated to payment instruments
the Issuers and Acquirers Forum
working groups focused on new technology and emerging policy

Policy

Local and global policy trends are shaping the future of payments.

As the payments system rapidly evolves, the views and expectations of policymakers, regulators and the broader public are undergoing a similar shift. Local and global policy trends are increasingly shaping the future of payments.

As the industry association and self-regulatory body, AusPayNet works with industry stakeholders, government regulators and the wider community to provide thought leadership and policy development for the payments industry. Our aim is to foster an efficient, effective payment system.

As part of this role, we:

conduct public consultations to help shape the future of payments
make submissions to regulators, government and other bodies on issues affecting the payments system
undertake research
consult with stakeholders
seek to foster wider debate about the future of payments

Membership

As the payments landscape becomes more diverse, the range of organisations we bring together continues to expand.

We are the self-regulatory body and industry association for payments.

Participation in AusPayNet activities is open to a diverse range of organisations. There are four broad categories of membership, which you can explore below.

By joining our network, organisations have the opportunity to:

Work collaboratively across the industry on payments system improvements
Help shape payments strategy and policy objectives
Be at the forefront of system-wide innovation
Attend member forums, briefings, networking events and one-on-one relationship meetings

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