.png)
The Bulk Electronic Clearing System known as BECS has been the backbone of Australia’s electronic payments since the late 1970s, underpinning direct debits and credits, and allowing businesses and government to process payroll, bill payments and supplier transactions.
For years, every time wages have arrived in a bank account or a utility company has collected an automatic payment, BECS has been at work in the background. As of 2024, BECS still processes 90% of retail account-to-account payments.
But while BECS has been reliable for decades, its capabilities are limited. For example, payments are only processed in batches during business hours. The system also carries minimal reference data, making reconciliation cumbersome and prone to errors.
As consumer and business expectations shift toward real-time, data-rich and always-on transactions, BECS is no longer fit for purpose. Because of this, BECS retirement is imminent and it has been scheduled to retire by mid-2030.
Its replacements include PayTo for businesses and the New Payments Platform (NPP) for NPP payments. These deliver richer data, instant funds transfers and real-time reconciliation, and many businesses have already made the transition to use this updated technology to leverage real-time payments in Australia.
Take a look at some more information about the end of BECS and how to prepare for what’s coming next.
Why BECS is Retiring
BECS custodian AusPayNet confirmed June 2030 as the target end date for decommissioning the system back in 2023 as part of the Strategic Plan for Australia’s Payment System.
The journey is by no means complete, with reports saying BECS still facilitated almost 90 per cent of Australian retail account-to-account payments as recently as 2024.
AusPayNet has set out a five-pillar approach to managing the retirement of BECS and is collaborating with industry and regulators, monitoring progress and coordinating a shared roadmap while continually testing the feasibility of the 2030 end date. It is also monitoring end-user perspectives and communicating with members, government and regulators to support a smooth transition to PayTo and the NPP.
What is the NPP and How Does it Work?
BECS facilitates batch payments that are processed during business hours, and shares limited data once those transactions are made. With this system, payments made late on a Friday often don’t reach accounts until the following week, and this can be even slower when transactions span time zones and borders.
The New Payment Platform (NPP) makes instant, 24/7, data‑rich payments possible. It supports PayID, Osko overlays, and PayTo, which give businesses greater visibility and control over payments and funds transfers.
Using the NPP gives businesses:
- Real-time visibility: Accounts are updated as soon as money is sent or arrives.
- Administrative efficiency: Faster payments and richer data help make account management and reconciliation faster and error-free.
- Happier customers and suppliers: Making and receiving payments becomes increasingly seamless.
- Financial agility: Funds are transferred and cleared in real time, which reduces costs and opens the door to faster decisions and activity.
The Role of PayTo in Replacing BECS
PayTo is leveraging the NPP to replace BECS. It can be described in simple terms as real-time direct debit, but it is more than that.
Businesses that incorporate PayTo in their workflows can make one-off, ad-hoc and recurring payments using an account-to-account payment solution that increases security and transparency, and reduces risk of disputes and incorrect payments. The system also delivers funds to accounts in seconds, for a low fixed fee per transaction.
With PayTo:
- Cashflow is improved as deposits are received in real time, 24/7
- Reconciliation is easier thanks to unique account identifiers and virtual accounts
- Payment status notifications are delivered instantly
- Agreements are securely authorised, reducing the risk of fraud
- Card on file payments can be made without a card surcharge
- Recurring payments can be scheduled in advance
- PayTo can be enabled for bill payments, corporate payroll and accounts payable
Prepare now with Monoova's PayTo solutions, learn more about PayTo.
The end of BECS: Taking action is essential
Over 100 financial institutions and more than a million accounts are NPP enabled. However, as explained by Westpac, many businesses still need to integrate this technology so they don’t have to rush an implementation of next-gen technology at the last minute.
If your business is yet to incorporate the NPP and PayTo, the following steps are recommended:
1. Understand the advantages
The integration of real‑time reconciliation, faster settlement and richer data usage will more than likely have a positive impact on your bottom line as well as helping your business stay in line with the competition, so it should be easy to make a business case for the transition.
2. Assess dependency on BECS
Map your business’s use of BECS for payroll, supplier payments, subscriptions, utility collections or government remittances. Understand where batch processes are entrenched as part of your financial processes and how critical they are to operations.
3. Engage with your bank or payments provider
Ask about PayTo readiness, API options to replace bulk files, support for debulking, Confirmation of Payee features, and timing for migration away from being dependent on BECS.
4. Plan your transition
A roadmap will support the integration of new technology. Your team, clients and suppliers should be informed about the NPP and PayTo’s benefits and the fact that your business is changing the way payments are managed.
The solution shouldn’t mean rebuilding the back end of your online systems or payment platforms from scratch; a plug-and-go API is more than likely possible.
5. Connect with a trusted supplier
Facilitating the transition from BECS to PayTo and the NPP requires a supplier to support the back end of the payments side of your business and help you integrate a seamless solution.
Monoova is the first payments provider to deliver PayTo at scale and was responsible for the majority of all PayTo agreements across Australia as recently as June 2024. Our team is helping companies across industries such as insurance, remittance, education and lending to keep payments flowing and business on track.
How Monoova Supports Businesses with PayTo
The end of BECS in 2030 will usher in a new era of smarter, real-time payments, but it’s possible to take advantage of the replacement technology, starting now.
Monoova is helping companies to integrate solutions that help them save money, improve cash flow and boost customer experiences with future-proof payment infrastructure.
Prepare your business for the BECS retirement in 2030.Transition to PayTo and NPP with Monoova’s real-time payment solutions. Speak with a member of our team today.
FAQs on BECS Retirement and NPP Transition
Q: When will BECS retire?
A: BECS is scheduled to retire in June 2030 as part of Australia’s payment system modernisation.
Q: What replaces BECS?
A: PayTo and the New Payments Platform (NPP) will replace BECS with instant, data-rich payments.
Q: How does PayTo benefit businesses?
A: PayTo offers real-time direct debit, improved reconciliation, and instant settlement.
Q: What should businesses do to prepare?
A: Review current BECS dependencies, engage your bank or payment provider, and plan a migration roadmap.
Q: How can Monoova help?
A: Monoova enables seamless PayTo integration, improving cashflow and reducing admin overhead.
.png)
