The Future of BECS in Australia’s Payment System
In Australia, the Bulk Electronic Clearing System (BECS) continues to play a significant role in the nation’s payments system. John Brogden, the chair of the Australian Payments Network, recently confirmed this at the AusPayNet conference held in Sydney.
This announcement comes after much anticipation and speculation about the future of BECS. According to Brogden, based on a majority view of BECS Members, “until further progress has been made and a clear roadmap has been developed for the future of account-to-account payments in Australia, AusPayNet is removing the target end-date of June 2030 for decommissioning the BECS Framework.”
Challenges Impacting the Decommissioning of BECS
Brogden highlighted that over the past two years, since the initial end-date was set, several challenges have emerged that have significantly influenced this decision:
- A shared vision for the future of account-to-account payments in Australia is yet to be established.
- The availability and customer adoption of alternative capabilities to BECS is still uncertain.
- The geopolitical and operational risk environment for payments in Australia and globally has become more complex.
Given these challenges, the majority of BECS Members now believe that achieving the original target end-date of June 2030 for the decommissioning of BECS is no longer viable.
Maintaining the Stability and Resilience of BECS
“We will continue to assess and update the outlook every six months. We remain committed to the stability and resilience of BECS for as long as it continues to operate,” assured Brogden.
Despite this commitment, BECS members still intend to transition towards more modern alternatives like the New Payments Platform (NPP), which is the industry’s strategic account-to-account payment system and the focus for investment and innovation.
Collaborative Efforts for the Future of Account-to-Account Payments
AusPayNet and Australian Payments Plus are collaborating through an A2A Payments Roundtable with the Reserve Bank of Australia (RBA) and the Commonwealth Treasury under an Australian Competition and Consumer Commission (ACCC) authorisation. Their aim is to shape a shared vision for the future of account-to-account payments in Australia and define a roadmap of high-level deliverables and milestones for achieving that vision. Both the vision and roadmap are expected by 2026.
Through a commitment to stability, resilience, and innovation, the future of BECS in Australia’s payment system looks promising despite the challenges. The collaborative efforts of AusPayNet, Australian Payments Plus, the RBA and the Commonwealth Treasury are testament to the industry’s commitment to evolve and adapt in response to changing needs.
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