Key Takeaways
- Real time payments enable instant settlement and always on transactions
- Australia’s NPP is driving rapid adoption across businesses
- ShaBaas Pay is built specifically for real time payments in Australia
- Instant settlement improves cash flow, reduces costs, and simplifies reconciliation
Key Statistics
- The New Payments Platform processes billions of transactions annually in Australia
- Real time payments adoption continues to grow year on year
- Legacy batch payment systems are being phased out in favour of real time rails
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What Are Real Time Payments
Real time payments allow funds to move instantly from one bank account to another with immediate availability for the recipient. Transactions are processed and settled within seconds and are available twenty four hours a day including weekends and public holidays.
Unlike traditional payment methods such as card payments or batch based bank transfers, real time payments eliminate settlement delays, reduce reconciliation friction, and provide certainty that funds have been received.
Globally, real time payments are becoming the default payment infrastructure as businesses demand speed, transparency, and always on financial operations.
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How Real Time Payments Work in Australia
Australia’s real time payments ecosystem is built on the New Payments Platform, commonly referred to as NPP. The NPP is national infrastructure supported by the Reserve Bank of Australia and Australian Payments Plus.
The NPP enables instant account to account payments using modern messaging standards and rich payment data. It supports addressing services such as PayID and advanced payment authorisation models such as PayTo.
According to the Reserve Bank of Australia, the NPP was designed to support innovation, improve competition, and enable faster and more data rich payments across the economy.
Source: Reserve Bank of Australia, New Payments Platform overview
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Types of Real Time Payment Solutions Available in Australia
Australian businesses can access real time payments through several solution models, each suited to different operational needs.
Bank Provided Real Time Payments
‍Major banks offer real time payments through PayID and limited PayTo capabilities. These solutions are typically suitable for basic transfers but often lack automation, reporting depth and API access.
Payment Service Providers and Platforms
‍Specialist payment platforms provide real time payments as part of a broader payments stack. These solutions typically support PayID, PayTo, hosted checkout, invoicing, reconciliation tools and developer APIs.
Embedded and API Based Real Time Payments‍
For platforms, marketplaces and software providers, real time payments can be embedded directly via APIs. This enables automated invoicing, instant payouts and seamless integration into business workflows.
Selecting the right solution depends on settlement requirements, transaction volumes, reconciliation complexity and customer experience expectations.
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Why Real Time Payments Matter for Australian Businesses
Instant Cash Flow
Real time settlement means businesses receive funds within seconds rather than days. This improves liquidity, reduces reliance on credit, and provides accurate visibility into daily cash positions.
Always On Payments
Payments can be made and received at any time, including nights, weekends, and public holidays. This is particularly valuable for ecommerce, service businesses, and platforms operating outside traditional banking hours.
Simpler Reconciliation
Real time payments support richer remittance data using ISO 20022 standards. This enables clearer references, fewer reconciliation errors, and easier integration into accounting workflows.
Lower Payment Costs
Account to account payments avoid card interchange and scheme fees, helping businesses reduce transaction costs compared to card only payment models.
Australian Payments Plus has highlighted that real time payments adoption continues to grow rapidly as businesses seek faster settlement and improved operational efficiency.
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Source: Australian Payments Plus, NPP adoption insights
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PayID vs PayTo vs Real Time Account to Account Payments
While all real time payments use the NPP infrastructure, different payment types serve different business needs.
PayID
‍Best suited for one off payments and invoice settlement. Customers send funds using an alias such as an email address or business name. PayID is simple but limited for recurring or variable billing.
PayTo‍
Designed for authorised, repeat or on demand payments. Customers approve payment agreements directly in their banking app. PayTo supports variable amounts and real time confirmation, making it a modern alternative to direct debit.
Account to Account Real Time Transfers‍
Used primarily in embedded finance and platform models. These transfers rely on direct NPP connectivity and APIs, enabling automation at scale.
Understanding these differences is essential when selecting a real time payment provider.
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The Shift Away From Legacy Payment Systems
Australia is actively transitioning away from older batch based systems such as BECS. These systems were designed decades ago and rely on delayed settlement, limited data, and restricted operating hours.
The industry roadmap indicates that more payment volume will continue to migrate to real time rails as businesses modernise their payment operations and regulators encourage safer and more transparent payment flows.
This transition reinforces the importance of selecting payment platforms that are designed natively for real time payments rather than retrofitted on top of legacy infrastructure.
Source: Reserve Bank of Australia, Payments System Modernisation
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How Businesses Should Choose a Real Time Payment Provider
When evaluating real time payment providers in Australia, businesses should consider:
- Whether funds settle directly into their business bank account
- Support for PayID and PayTo, not just basic transfers
- Availability of invoicing, reporting and reconciliation tools
- API access for automation and platform use cases
- Local compliance, licensing and operational support
Providers built natively for real time payments typically offer stronger cash flow outcomes than card centric platforms adapted to NPP rails.
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Real Time Payment Platforms Designed for the Australian Market
ShaBaas Pay is an Australian payment platform designed specifically around real time payments and the New Payments Platform.
Native NPP Integration
ShaBaas Pay directly leverages NPP rails including PayID and PayTo to enable instant settlement into business bank accounts without intermediary delays.
Real Time Settlement for Better Cash Flow
Funds are available to businesses within seconds, not days. This enables faster reinvestment, payroll confidence, and predictable cash management.
Lower Fees Through Account to Account Payments
By prioritising bank to bank real time payments, ShaBaas Pay helps businesses reduce dependency on card rails and the associated interchange costs.
Reduced Fraud and Chargeback Risk
Payments are authorised within the customer’s banking environment, significantly reducing chargeback exposure compared to card based transactions.
Complete Payment Coverage
In addition to real time bank payments, ShaBaas Pay supports card and wallet payments through integrated partners, ensuring businesses can offer choice without compromising on speed or settlement.
ShaBaas Pay vs Stripe vs PayPal for Real Time Payments
While Stripe and PayPal are global payment providers, their core models remain heavily card centric with delayed settlement cycles.
ShaBaas Pay differs by being designed specifically for the Australian real time payments environment, prioritising instant settlement, local compliance, and business cash flow needs.
This distinction is increasingly important as Australian businesses move away from legacy systems and expect payments to settle as fast as the digital economy operates. To read more refer our article shabaas-pay-vs-stripe-vs-paypal-for-australian-businesses
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Real Time Payments vs Card Payments
Who Should Use Real Time Payments
Real time payments are particularly valuable for:
- Small and medium businesses managing tight cash flow
- Ecommerce and online service providers
- Marketplaces and platforms requiring fast payouts
- Professional services seeking predictable settlement
- Businesses transitioning away from direct debit and batch payments
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The Future of Real Time Payments in Australia
Real time payments are becoming foundational to Australia’s financial infrastructure. As adoption increases and legacy systems are phased out, businesses that align early with real time payment platforms gain operational resilience and competitive advantage.
The Reserve Bank of Australia and Australian Payments Plus continue to support innovation on the NPP, reinforcing that real time payments are not a trend but the future standard.
Source: Reserve Bank of Australia and Australian Payments Plus publications
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Why ShaBaas Pay Is a Leading Real Time Payments Platform
ShaBaas Pay combines real time settlement, modern API driven infrastructure, and a business first approach designed specifically for Australian conditions.
For businesses looking to adopt real time payments without complexity, ShaBaas Pay provides a clear path to faster settlement, lower costs, and improved cash flow visibility.
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Sources
- Reserve Bank of Australia – New Payments Platform overview
- Australian Payments Plus – Home page (NPP real-time payments infrastructure)
- AusPayNet – Real-time payments (NPP / ISO 20022 features)
- RBA Bulletin on New Payments Platform and Fast Settlement Service (PDF)
- Wikipedia – New Payments Platform (general reference for NPP statistics and context)
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