NSW government leads real-time payments transition ahead of 2030 deadline

The NSW government has emerged as a frontrunner in adopting real-time payment capabilities as Australia’s payment system undergoes significant transformation.

While many businesses lag behind consumer adoption of real-time payments, the state government is actively implementing strategies to enhance service delivery to its eight million citizens.

The transition comes as Australia moves toward winding down cheques by 2029 and switching off batch payments from the Bulk Electronic Clearing System (BECS) by 2030.

NSW has already reduced its cheque use by over 70 per cent and begun implementing payment channel enablement to utilise real-time capability.

Westpac’s managing director of global transaction services, Jeff Byrne, said the government had demonstrated foresight where others saw complexity.

“NSW is transforming the way services are accessed and utilised with faster, more secure payments for things like driver’s licences and car registrations, ensuring social procurement policies are met for small businesses and, vitally, funding for communities in times of need,” Mr Byrne said.

Early milestones in the transition included the adoption of digital payments in NSW government schools and platform standardisation within government agencies to simplify shared services.

Service NSW has been working with Westpac to develop real-time readiness capabilities that can be deployed across other state agencies.

Westpac’s partnership with the NSW government has been renewed with its reappointment as a leading banking partner from April 1, extending a relationship spanning nearly 200 years.

Lynne Cardwell, NSW Treasury’s executive director for banking and financial services, said the bank had been instrumental in modernising payments for the state.

“Westpac has played an important role in supporting the modernisation of payments for NSW government and its citizens and we see the extension of this relationship as foundational on our transition to real time,” Ms Cardwell said.

The government has connected to Westpac’s Payments Plus and Quickstream platforms, covering both traditional and real-time payment capabilities.

NSW is now implementing NPP capabilities for PayTo, the real-time alternative to direct debits, and Bulk OSKO for emergency payments.

Under the latest five-year agreement, Westpac will provide transaction banking, merchant acquiring and liquidity management services, and has been contracted to support transit payments across NSW, along with commercial credit cards, including real-time dynamic virtual cards.

Mr Byrne emphasised that large organisations should begin their transition early, as the switch to real-time payments requires planning, strategy development and staff education.

“Benefits include competitive edge – we call it ‘the real-time advantage’ – with the ability to deliver faster on customer expectations, not to mention improved efficiencies and the greater transparency the real-time era’s rapid movement of money can deliver to treasury functions,” he said.

While some organisations are moving proactively because they recognise the value, others view the transition more as a compliance exercise tied to the 2030 deadline.