In a recent speech, RBA Governor Michele Bullock outlined the critical need to modernise Australia’s payments system, framing it as the essential digital infrastructure for the 21st-century economy.
Just as the Sydney Harbour Bridge transformed a city, a robust payments system is fundamental to how the nation functions. Australians now make around 700 digital payments per year on average, a dramatic increase from just 100 at the turn of the century. This system must be safe, reliable, low-cost, and easy to use for everyone.
Australia has been a world leader in payments innovation, with the early and widespread adoption of ‘tap-and-go’ card payments and the successful introduction of the New Payments Platform (NPP), offering 24/7 bank transfers. Despite these advancements, Governor Bullock highlighted several areas requiring further progress.
Key focuses include modernising the ageing bulk payments system (BECS), enhancing often slow and costly cross-border payments, and urgently combating fraud and scams through innovations like the NPP’s new ‘Confirmation of Payee’ service. Strengthening the system’s operational resilience against cyber threats is also a top priority.
While digital payments dominate, cash remains vital for resilience and inclusion, with 1.5 million Australians still relying on it for everyday transactions. The RBA is committed to ensuring cash remains a viable payment method.
Governor Bullock concluded that maintaining and evolving this digital bridge is an economic imperative. By fostering collaboration between industry and regulators, Australia can ensure its payments system continues to expand the nation’s possibilities for generations to come.
