The Bulk Electronic Clearing System (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. Payments are only processed in batches during business hours, and the system 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. BECS custodian AusPayNet confirmed June 2030 as the target end date for decommissioning the system as part of the Strategic Plan for Australia’s Payment System.

Its replacements include PayTo for businesses and the New Payments Platform (NPP), both delivering richer data, instant fund transfers, and real-time reconciliation. Payment service providers such as Monoova can enable businesses to leverage real-time payments and PayTo through API-enabled technology.

 

 

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 across time zones and borders.

The New Payments Platform (NPP) makes instant, 24/7, data-rich payments possible. It supports PayID, Osko overlays, and PayTo, giving businesses greater visibility and control over payments and fund transfers.

Using the NPP gives businesses:

• Real-time visibility: Accounts are updated instantly as money is sent or received.

• Administrative efficiency: Faster payments and richer data improve reconciliation and reduce errors.

• Happier customers and suppliers: Payments become seamless and immediate.

• Financial agility: Funds are cleared in real time, reducing costs and enabling faster decisions.

 

 

The Role of PayTo in Replacing BECS

PayTo leverages the NPP to replace BECS. It can be described as real-time direct debit — but it’s much more.

Businesses using PayTo can make one-off, ad-hoc, and recurring payments through a secure, transparent, account-to-account solution that reduces risk and disputes. Funds arrive in seconds, with a low fixed fee per transaction.

With PayTo:

• 💰 Cash flow improves — deposits are received in real time, 24/7

• 📊 Reconciliation is easier — via unique account identifiers and virtual accounts

• 🔔 Payment status notifications — delivered instantly

• 🔒 Agreements are securely authorised — reducing fraud risk

• 💳 Card-on-file payments — without card surcharges

• 🗓️ Recurring payments — can be scheduled in advance

• 🧾 PayTo can be used — for bill payments, corporate payroll, and accounts payable

With payment service providers like Monoova, businesses can harness PayTo and other payment solutions to streamline operations and improve customer experience.

Ready to leverage real-time payments and automated reconciliation?

Monoova are leaders in real-time payments, with over $170B+ in transactions processed to date.
You can meet the Monoova team at The Business Show this November — come chat to the team!