RTPs and A2A payments in Australia – where are we now? | Exclusive interview with Australian Payments Plus

Lynn Kraus, the CEO of Australian Payments Plus (AP+), offers insights into Australia’s approach to real-time payments – from design and architecture to how regulatory bodies support such paytech developments.

Australia’s A2A system was purpose-built from scratch. How has this approach shaped its capacity compared to systems built on legacy infrastructure?

When Australia’s real-time payments (RTP) platform, the NPP, launched in 2018, it was quite rare in the world of payments: a system built for real-time from the ground up. From day one, it was designed to be always-on, fast, data-rich, and secure, rather than having to work around older technology.

That design decision has made a real difference. The NPP’s modern modular architecture allows us to introduce new features and services with relative ease – things like PayTo, which gives customers greater control over recurring payments, and the International Payments System, which processes the inbound leg of international payments in real time. More recently, the same foundation has helped innovations like Confirmation of Payee (CoP), designed to tackle scams and mistaken payments by letting people confirm they’re sending funds to the intended recipient before the money leaves their account.

This forward-looking design has also made it easier for banks and fintechs to innovate safely and confidently, knowing they’re working on a system purpose-built for the future rather than adapted from the past.

It has also positioned Australia to explore emerging areas, like CBDCs and tokenized value exchange, without needing a wholesale rebuild of the core system.

What factors drove the adoption of real-time A2A payments in Australia, and what barriers, if any, remain for broader usage?

A few things have come together to make Australia a strong adopter of RTPs, starting with Australians’ digital engagement savviness. Cash usage has dropped: from accounting for about 70% of payments in 2007 to roughly 12% today, while 95% of in-person card payments are now tap-and-go. That shift has created a natural appetite for faster, more seamless ways to move money.

When the NPP launched, consumers were quick to embrace it for person-to-person payments (P2P), sending money to a friend in seconds instead of days. Since then, adoption has rapidly grown. There are now more than 1.6 billion NPP transactions a year, worth around AUD 6 billion a day. And it’s not just small payments – the largest single transfer on the system so far was AUD 45 billion, which shows the same rails can support both micro and institutional payments with equal confidence.

Momentum is now building around business adoption. We’re seeing new real-time use cases emerge across sectors such as ecommerce, education, telcos, superannuation (mandatory retirement contributions), and government. Businesses are increasingly realising the operational benefits: instant availability, no cut-off times, automated reconciliation, and better control over cash management.

What’s holding it back now isn’t technology – it’s awareness and change management. Businesses and consumers know cards and direct debit well; however, many organisations are still learning about the control, speed, and efficiency benefits of, for example, our PayTo solution for recurring payments. In some cases, it also means thinking about changes that might be required for businesses’ back-end systems and processes – these are conversations that take time but ultimately have the potential to unlock significant value.

Another big factor has been policy clarity. Australia’s government has set a clear direction for a modern, world-class payments system that is safe, trusted, accessible, and globally competitive. The government is actively involved in furthering that vision through regulation, encouraging competition, and ensuring fair outcomes for consumers and businesses. For example, just a few months ago, it updated the payments regulation to ensure it captures new and emerging payment methods, including international methods like Apple Pay. It’s also leaning into new payment forms, such as wholesale CBDCs, with a tokenization pilot underway, in which we also participate.

We’re close to a tipping point. The foundations are there: broad bank enablement, strong consumer appetite, regulatory support, and proven reliability. The next phase is about deepening adoption across businesses and government and helping Australians make the most of the infrastructure that’s already in their hands.

How are upcoming regulations expected to impact the adoption of real-time payments in the region?

I already touched on the policy support we see in Australia for payments modernisation, something that translates into tangible change.

One key example is superannuation. Australia’s mandatory retirement savings system is one of the largest in the world, with more than AUD 4 trillion (around USD 2.5 trillion) in assets. From July 2026, employers will have to pay retirement contributions and wages simultaneously, rather than quarterly (the typical practice today for retirement savings), and these contributions must reach employees’ retirement accounts within seven days after payday.

The benefits go well beyond compliance. Contributions will be invested sooner, there’s less chance of errors or missed payments, and employees will have greater visibility over their retirement accounts.

The Australian Taxation Office has already recognised the role that RTPs will play in making this possible, and pension funds are preparing to receive contributions in real time. It’s a big operational change across payroll, accounting, fund administration, and a strong example of how real-time infrastructure can deliver broad system improvements.

Given the scale of the sector and the implications for employers and other parties in the payments chain, we also expect this to be a big catalyst for broader adoption of RTPs by businesses. It can create opportunities for employers not only to think about how they will meet their new obligations but also to benefit from payment processing efficiencies that could extend to other areas.

AP+ is bringing together Australia’s three domestic payment rails. What are the benefits that derive from this in terms of collaboration, costs, and innovation across the ecosystem?

Australian Payments Plus (AP+) was formed in 2022 through the merger of our national billing system BPAY, our domestic debit card network eftpos, and our RTP rail, the NPP. Bringing the three domestic payment systems under one roof has created a unique structure that aligns investment, strategy, and innovation across debit cards and account-to-account (A2A) payments. It also allowed us to create a bank-led, private sector national digital identity exchange – ConnectID.

The integration has already delivered real benefits. It has reduced effort duplication, created a single industry vehicle for collaboration across banks, fintechs, government, and merchants, and allowed us to reinvest more efficiently in innovation and resilience.

As a member-owned, public-interest utility, AP+ can take a long-term view, making sure Australia’s payment system continues to modernise in a way that’s sustainable, secure, and inclusive.

Another important advantage is linked to payments sovereignty: the ability for Australia to shape its own payments future while remaining globally connected. Having critical infrastructure governed and operated domestically ensures decisions about investment, innovation, and resilience are made in Australia’s best interests. It also provides the flexibility to quickly respond to local needs, whether that’s strengthening fraud prevention, supporting policy priorities like payday super, or enabling innovation through initiatives like ConnectID and PayTo.

Looking ahead, we’re also increasingly seeing use cases where we can combine our capabilities. For example, in areas similar to agentic commerce, where payments and digital identity come together to enable seamless, trusted interactions between humans, devices, and AI-driven agents.

What is your vision for the future of real-time A2A payments in the country?

The future will be about integration and intelligence: payments that are not just fast, but smarter, safer, and more connected.

We’ll see RTPs become the default way money moves between accounts – whether that’s paying a bill, running payroll, settling supplier payments, or receiving a government payment.

Tools like PayTo and CoP will keep expanding what’s possible. Together, they give people and businesses greater control and confidence over where money is going, while helping reduce fraud and improve efficiency.

Then there’s the next layer, where payments and digital identity start to come together. Through our ConnectID digital identity service, we’re already seeing how simple, secure ways to prove who you are can unlock smoother onboarding and safer digital interactions. That same foundation could support agentic commerce, where trusted digital agents act on your behalf to make purchases, verify details, or automate tasks securely in the background.

Initiatives like Project Acacia, the Australian Reserve Bank’s tokenized assets pilot, will shape how value moves in the next decade. What’s important is that Australia continues to build on its strengths – a resilient, real-time infrastructure and a collaborative industry – so that innovation can keep happening safely and at scale.

Ultimately, the goal is a payments ecosystem that works instantly, securely, and intelligently, giving Australians more choice, more control, and more trust in every transaction.

 

About the author

Lynn Kraus is the CEO of Australian Payments Plus (AP+). She is focused on ensuring that the company is strategically placed to deliver world-class payments for Australia now and into the future. Before joining AP+, Lynn worked in professional services for over 25 years, holding various leadership positions at EY.

 

 

About Australian Payments Plus (AP+)

Australian Payments Plus (AP+) operates Australia’s core domestic payments infrastructure – the eftpos debit card network, the BPAY national bill payment service, and the NPP real-time payment system – along with ConnectID, a safe and secure way for Australians to verify their identity. 

We connect banks, financial institutions, retailers, government agencies, and fintechs to make it possible for millions of Australians to pay and get paid, and prove their identity every day. As a home-grown company, we’re shaping the future of payments by driving innovation, improving security, and ensuring the payments system works better for everyone. For more information, visit www.auspayplus.com.au