As Australia embraces digital transformation, account-to-account payments have emerged as a driving force in reshaping how businesses and consumers move money. The advent of the New Payments Platform (NPP) and the rapid adoption of PayID and PayTo are leading the way in real-time payments, but this is just the beginning. Let’s explore the key trends that will shape the future of account-to-account payments in Australia.

1. The Rise of Real-Time Payments

Real-time payments, made possible by the NPP, have already revolutionised the Australian payment landscape. With NPP infrastructure enabling faster, 24/7 transactions, the reliance on traditional banking hours and batch processing is diminishing. PayID has simplified payments by allowing consumers to link their bank account to an email or phone number, while PayTo is transforming how businesses handle recurring payments. These technologies are expected to become the standard, driving even greater speed and efficiency. 

Trend Insight: According to a report from Grand View Research, the global real-time payments market is expected to grow by over 23.6% annually through 2030. In Australia, the NPP continues to evolve, offering businesses and consumers a scalable platform to meet their future payment needs.

2. Enhanced Security and Fraud Prevention

As payments become faster, ensuring the security of transactions becomes even more critical. The NPP’s real-time capabilities mean that the window for detecting fraud is shorter, requiring advanced solutions like biometric authentication, AI-driven fraud detection, and enhanced identity verification processes. 

Trend Insight: Australia’s commitment to strengthening payment security was highlighted by the RBA’s push for all NPP-connected banks to support the PayID Confirmation of Payee feature. This initiative ensures that payments are sent to the correct recipient, significantly reducing fraud in account-to-account payments. 

3. Greater Adoption of PayTo for Recurring Payments

PayTo is poised to become the go-to method for managing recurring payments such as subscriptions, utilities, and other scheduled payments. Unlike traditional direct debits, PayTo offers greater control and transparency to consumers, allowing them to authorise and manage payments directly from their bank account. This makes it an attractive alternative for businesses looking to reduce payment failures and improve the customer experience. 

Trend Insight: With consumer expectations shifting towards seamless and secure payments, PayTo is projected to become integral to the subscription economy, which is expected to grow to $1.5 trillion globally by 2025.

4. Personalisation and AI-Driven Payments

AI and machine learning technologies are increasingly being integrated into payments, enabling businesses to offer personalised services. In account-to-account payments, AI can be used to predict consumer payment behaviour, detect fraud, and optimise payment processing times, creating a smarter and more efficient ecosystem. 

Trend Insight: AI is expected to add $15.7 trillion to the global economy by 2030. Fintechs and payment companies that adopt AI-driven services will lead the next wave of personalisation and operational efficiency in the payments industry. 

5. Blockchain’s Potential Role in Payments

Blockchain technology is rapidly gaining attention as a secure and decentralised method for facilitating account-to-account payments. Although the adoption of blockchain in Australia’s banking and payments system is still in its early stages, its potential for reducing fraud, increasing transparency, and lowering transaction costs could make it a key technology in the future. 

Trend Insight: A PwC report indicates that blockchain could add over $1.76 trillion in global GDP by 2030. In Australia, banks are beginning to explore how distributed ledger technologies (DLT) can complement the existing NPP infrastructure. 

Learn more about account-to-account payments today

References: 

1. Grand View Research. (2022). Real-Time Payments Market Size & Share Report, 2030. 
2. Reserve Bank of Australia and Australian Payments Plus. (2023). NPP and PayID Confirmation of Payee. 
3. Juniper Research. (2023). The Subscription Economy & Recurring Payments. 
4. PwC. (2021). Global Artificial Intelligence Market Analysis. 
5. PwC. (2020). Time for Trust: The trillion-dollar reason to rethink blockchain.