Payments System Board Annual Report – 2025Foreword

We can be proud of Australia’s payments system, which is efficient and reliable by global standards. Nevertheless, the payments environment is evolving rapidly, with new technologies and business models emerging. Work by industry is also gathering pace on moving from legacy systems towards new platforms that can deliver payment services that are faster, safer and more convenient. At the same time, a more uncertain global environment means that the resilience of the payments system is more important than ever. In this context, the Payments System Board continues to focus on promoting the safety, efficiency and competitiveness of Australia’s payments system.

In August 2025, the Board endorsed the RBA’s payments policy strategy for the next two years. Our first strategic objective is to further strengthen the resilience of the payments system. This involves identifying system-wide risks for Australia’s payments system, calling on payments and market infrastructures to strengthen their governance, risk management and operational resilience, and operationalising the RBA’s new crisis management powers for clearing and settlement facilities. Our second objective is to promote a competitive, accessible and innovative payments system. As part of this, we are overseeing industry’s efforts to modernise account-to-account payments, continuing to enhance cross-border payments and supporting the Australian Government’s work on payments regulatory reform. Our third objective is to shape the future of money so it meets the evolving needs of the community, economy and financial system. Of particular focus here is our analysis of how innovations in digital money could enhance the functioning of our financial markets.

The supervision of clearing and settlement facilities is a very important area of the Board’s work. Over the past year, there has continued to be a significant focus on the risk management of the Australian Securities Exchange (ASX), particularly for operational risk. It is important that the ASX continues to prioritise the delivery of safe and reliable clearing and settlement infrastructure for Australia’s financial markets. The Board also continues to focus on the operational resilience of other financial market infrastructures that operate in Australia given their importance to the ongoing stability of the financial system.

A major milestone of 2024/25 was the passage of the government’s regulatory reforms for financial market infrastructures. These reforms provide the RBA and other regulators with the capabilities required to appropriately supervise financial market infrastructures and, in the unlikely event of a crisis, intervene to support continuity of critical services. Work to operationalise the reforms is underway, including planning for resolution of critical clearing and settlement facilities and development of resolution guidance to provide additional transparency to stakeholders. Legislation to modernise the Payment Systems (Regulation) Act 1998 is being considered by the Australian Parliament and more work has been done on developing a new licensing framework for payment service providers.

The RBA’s policy work on retail payment systems over the past year has focused on efficiency and competitiveness in card payments and the future of the account-to-account payments system. The RBA commenced a review of merchant card payment costs and surcharging and published a consultation paper for stakeholder feedback. The RBA also undertook a risk assessment of industry’s proposal to decommission the Bulk Electronic Clearing System by June 2030 and made a set of recommendations to support a safe and orderly migration that serves the public interest.

The RBA continues to investigate the potential use and implications of new forms of money. During the year, RBA staff, in partnership with the Digital Finance Cooperative Research Centre, commenced a collaborative research project investigating how innovations in wholesale digital money could support the settlement of transactions in tokenised asset markets. The RBA is also conducting research into the policy issues associated with retail central bank digital currency.

RBA staff have carried out their work with professionalism and provided excellent support to the Board throughout the year. The Payments System Board joins me in thanking the staff for their work and for their ongoing contribution to supporting the efficiency, competitiveness and safety of Australia’s payments system.

Michele Bullock
Governor and Chair
Payments System Board
24 September 2025