Payments

Australia’s payments system is changing quickly. Fewer people are using cash and cheques. More payments happen instantly through the New Payments Platform (NPP). Government and regulators are working through the most significant changes to Australia’s payments regulatory framework in decades. Banks are investing heavily to keep the system safe and reliable, while making sure Australians who rely on cash are not left behind.

How Australians pay

Cash use keeps falling and now makes up a small share of everyday payments, as the chart shows. Cheques are also being phased out, with banks working to an industry timetable to retire them completely.

Modernising the system

Australia is rebuilding its payments infrastructure for a digital economy.

The New Payments Platform (NPP) processes billions of instant payments each year, things like PayID and Osko transfers, and is being upgraded again, with a major update planned for late 2026.

BECS, the older system that still processes many direct debits and salary payments behind the scenes, is planned to be replaced over time by newer infrastructure. Customers are not expected to notice a change to the way they make or receive payments.

The Payments System Modernisation Act updates payments regulation that had not kept pace with how Australians actually pay today. The ABA welcomed the reforms, which update laws written for a very different payments environment and help ensure regulation keeps pace with modern payment methods.

From 1 October 2026, surcharges on eftpos, Mastercard and Visa payments will be removed, following the Reserve Bank’s March 2026 decision. The ABA supports this change because it simplifies pricing for consumers and removes card surcharges at the checkout. Read more on our Surcharging page, including frequently asked questions.

The same reforms also reduce interchange fees paid to card issuers. The ABA has expressed concerns that the changes could affect future investment in payments infrastructure and innovation.

Keeping payments safe

As payments move faster and increasingly online, protecting customers from scams matters more than ever.

Confirmation of Payee checks that an account name matches before you send a payment, helping to catch scams and mistaken transfers before money leaves your account.

The Scam-Safe Accord commits banks to a shared set of protections and response standards, so customers get consistent support no matter which bank they use.

The ABA also continues to work with government on the Scam Prevention Framework, supporting consistent obligations across banks, telcos and digital platforms so scammers cannot simply exploit the weakest link.

Cash access

Cash remains an essential payment option for many Australians, particularly in regional communities and for people who cannot or do not want to bank digitally. The banking industry remains committed to ensuring Australians who rely on cash continue to have reasonable access to cash services, and supports the Cash Distribution Framework Bills as a step towards securing long term cash access. Find your nearest option on our Fee-Free ATM Sites page.

The data behind the shift

For a detailed and regularly updated view of how Australians are paying, covering cards, the NPP, direct entry and cash, sourced from the Reserve Bank’s Retail Payments Statistics, visit the ABA’s interactive payments data dashboard in our Data and Research section.