Highlights

  • The RBA is working with industry on the future of Australia's account-to-account payment infrastructure.
  • Payment innovation is being linked to broader productivity and economic efficiency objectives.
  • The central bank is seeking a balance between affordable transactions and incentives for infrastructure investment.
  • Industry-led initiatives remain the preferred approach where they can address public interest concerns.

Australia's account-to-account payment infrastructure has emerged as an important focus for the Reserve Bank of Australia as policymakers consider ways to improve financial efficiency, competition and service reliability. Speaking at the AFIA Conference on 20 October 2026, Ellis Connolly, Head of Payments Policy Department, discussed the role of modern payment systems in supporting economic productivity while maintaining incentives for continued private-sector investment.

Account-to-Account Payments Attract Regulatory Attention

Account-to-account payments allow funds to move between bank accounts without relying on conventional card payment networks.

These transactions support a range of financial activities, including personal transfers, business payments and other account-based transactions.

The RBA is working with industry participants to consider the future development of Australia's account-to-account payment system.

Connolly identified this area as a potential contributor to productivity improvements across the economy.

More efficient payment infrastructure can help businesses manage transactions, reduce administrative complexity and improve the movement of funds.

However, the precise commercial benefits depend on system design, implementation costs and adoption.

Payment Innovation and Competition Are Connected

The central bank views competition and accessibility as important features of a well-functioning payment ecosystem.

Maintaining a choice of payment methods can support customers and merchants while reducing dependence on individual technologies.

Connolly also explained that greater choice can strengthen resilience.

When one payment method becomes unavailable, alternative systems may allow transactions to continue.

This relationship between competition and operational resilience forms part of the RBA's broader policy approach.

Infrastructure Investment Remains Essential

Developing payment infrastructure requires ongoing spending on technology, cybersecurity and operational systems.

The RBA recognises that affordable payment services must be balanced against the need for providers to earn sufficient returns to support investment.

Connolly emphasised that payment systems must continue to provide incentives for safety and innovation.

This creates a policy challenge: encouraging lower transaction costs without weakening the commercial foundations supporting financial infrastructure.

The central bank is incorporating both objectives into its work on future account-to-account payments.

Industry Cooperation Will Shape Future Development

The RBA has expressed a preference for industry-led solutions where they can adequately address payment system concerns.

This approach allows financial institutions and technology providers to participate directly in developing infrastructure improvements.

Regulatory intervention remains possible where private-sector solutions do not adequately address public interest issues.

The next phase of development will therefore depend on collaboration between regulators, financial institutions and payment technology participants.