Many people in Australia don’t think twice about how they pay. They simply insert, tap, or swipe their cards without realising they’re using one of the most advanced, fastest-moving payment environments in the world. Australia’s payment market is growing and projected to be worth over $2 trillion US dollars (USD) by 2030. The country’s payment systems are a growth lever, so businesses should understand how they work.

Below, we’ll discuss how payment systems in Australia work and what to think about when you choose a payment setup.

What's in this article?

• What payment systems are used in Australia?
  
• How does Australia’s payments infrastructure work?
  
• How do businesses accept payments in Australia today?
  
• How does Stripe support modern payments in Australia?
  
• How do you choose the right payment system for your business?
  
• How Stripe Payments can help
  

What payment systems are used in Australia?

In Australia, a mix of legacy systems and modern infrastructure work together to get businesses paid with minimal effort from the customer. Here are the different payment systems available in Australia.

Card networks

Credit and debit cards are the dominant payment methods in Australia. Most Australian-issued debit cards are dual-network cards: they work on Visa and Mastercard, as well as the national network known as Electronic Funds Transfer at Point of Sale (EFTPOS). Digital wallets like Apple Pay and Google Pay run on the same card networks as physical cards and have surged in popularity because they’re fast and secure.

Australian Payments Network (AusPayNet)

There are multiple systems that enable bank transfers in Australia. Direct entry, the legacy method administered by AusPayNet, still powers payroll, direct debits, and bill payments. It’s reliable but slow. AusPayNet administers the Bulk Electronic Clearing System (BECS), which is used for batch-based direct debits.

New Payments Platform (NPP)

The NPP is built for real-time transfers and is available around the clock. NPP services such as Osko and PayID allow customers to send and receive money, typically in less than a minute. PayID, in particular, lets you link an email address, phone number, or other identifier to a bank account. More than 34 million PayIDs have been registered as of December 2025, and the NPP facilitates about $7 billion Australian dollars (AUD) of payments daily, on average.

PayTo is a relatively new NPP service that brings real-time bank payments to online checkout by enabling businesses to initiate payments from customers’ bank accounts. It’s an alternative to BECS. Near the end of 2025, PayTo settled 698,731 payments over the previous six months, up 48.9% compared to the previous six-month period.

BPAY

The BPAY network has operated since 1997 and is still offered by more than 55,000 businesses to help customers pay their bills for rent, utilities, insurance, and other regular, scheduled payments. Customers pay through their online banking portal using a biller code and reference number.

Buy now, pay later (BNPL)

Buy now pay later is also growing. Afterpay and its peers are checkout options in retail, fashion, and travel. A national study found that more than a third of Australians had used a Buy now pay later service in the previous six months, particularly Gen Zers, who preferred Buy now pay later over credit cards for online purchases.

How does Australia’s payments infrastructure work?

The Reserve Bank of Australia (RBA) runs the Reserve Bank Information and Transfer System (RITS), which settles high-value payments between banks and other approved institutions in real time. Banks hold Exchange Settlement Accounts at the RBA. These are where the money ultimately lands. RITS’s Fast Settlement Service settles transactions submitted via the NPP feeder system on a real-time gross settlement basis, which means that transactions are immediate but also irrevocable.

AusPayNet administers direct entry payments through BECS. Settlement instructions for direct entry as well as retail card payments (aside from Mastercard and EFTPOS scheme transactions) are sent to RITS through the Low Value Settlement Service. Direct entry obligations typically settle on a same-day basis in five multilaterally netted settlements throughout the business day.

In 2021, the Australian Competition and Consumer Commission approved a merger of the domestic systems EFTPOS, BPAY, and the NPP under a single entity called Australian Payments Plus (AP+). AP+ supports these major systems’ sustainability and improvement.

How do businesses accept payments in Australia today?

POS terminals, specifically EFTPOS machines, are a common way for businesses to accept payments in person. These computers or tablets also often accept Visa, Mastercard, American Express, and digital wallets, and contactless card payments are common.

Service businesses often use bank transfers and include BPAY or bank account details on invoices. Tools like Xero integrate Stripe payment buttons, which allow customers to pay instantly with cards, Apple Pay, or Google Pay.

Platforms that split payments, such as marketplaces and gig economy apps, need solutions like Stripe Connect to facilitate routing, identity checks, and payouts automatically. This is helpful for compliance and growth. Instead of building online payments infrastructure from scratch, businesses can rely on infrastructure like Stripe’s. That gives teams visibility across everything from reconciliation to fraud.

How does Stripe support modern payments in Australia?

Stripe launched in Australia in 2014. Since then, it’s grown into a full-stack payment provider customised for Australian payment preferences, whether customers are paying online or in store.

Here's what that looks like in practice.

Card payments with smart routing

Stripe supports all major card networks (e.g., Visa, Mastercard, American Express) and can automatically route eligible debit transactions over EFTPOS when it’s cheaper for the business through least-cost routing.

Digital wallets built in

Apple Pay and Google Pay are ready to go with minimal setup. Wallet acceptance is important for conversion, given Australians’ mobile-first behaviour. Stripe lets businesses offer Afterpay directly through the Stripe Dashboard. Customers pay in instalments and businesses get paid up-front. Stripe also supports both the legacy BECS system and the newer PayTo framework for funds transfers from customers’ bank accounts.

Unified online and in-person payments

With Stripe Terminal, companies can accept contactless payments in store or on the go. Payment data stays in sync. One platform can handle cards, wallets, in-person terminals, and other global, flexible tools so you don’t have to rebuild as payment options change.

How do you choose the right payment system for your business?

Choosing a payment setup is about what works for your customers, business model, and future. Consider what your customer expects at checkout: cards and digital wallets are necessary, Buy now pay later matters in retail, and PayTo is good for direct transfers.

You’ll also want to be aware of your margins. Accepting card payments will mean interchange fees. Buy now pay later comes with high fees but can also increase conversion rates. Make a decision based on what supports your unit economics.

Your payments infrastructure should minimise administrative work and grow with you. Consider the future of your business: determine whether you need recurring billing, invoicing, or marketplace payouts and whether you prefer one system for online and in-person payments. Look for built-in security, fraud prevention, and Payment Card Industry (PCI) compliance. Downtime is lost revenue, so choose infrastructure you can trust.

How Stripe Payments can help

Stripe Payments provides a unified, global payment solution that helps any business accept digital wallet payments online, in person and around the world.

Stripe Payments can help you:

• Optimise your checkout experience: Create a frictionless customer experience and save thousands of engineering hours with prebuilt payment UIs, access to 100+ payment methods, including more than a dozen digital wallets, and Link, a wallet built by Stripe.

• Expand to new markets faster: Reach customers worldwide and reduce the complexity and cost of multicurrency management with cross-border payment options, available in 195 countries across 135+ currencies.

• Unify payments in person and online: Easily track and reconcile digital wallet payments across online and in-person channels.

• Improve payment performance: Increase revenue with a range of customisable, easy-to-configure payment tools, including no-code fraud protection and advanced capabilities to improve authorisation rates.

• Move faster with a flexible, reliable platform for growth: Build on a platform designed to scale with you, with 99.999% historical uptime and industry-leading reliability.

Learn more about how Stripe Payments can power your online and in-person payments or get started today.