Unlocking the real-time advantage: Why the shift from BECS to NPP is a strategic imperative
In the coming years, Australia will undergo the most significant change to the payments landscape in 30 years, with the transition from cheques and direct entry to digital real-time payments. The shift from legacy to the New Payments Platform (NPP) is not merely a technical upgrade – it represents a fundamental reimagining of how organisations create value.
From Legacy to Leadership: Transition from BECS
Direct Entry has served as the backbone of Australia’s payments infrastructure for decades – processing 17.4 trillion in payments per annum - enabling direct entry payments such as payroll, supplier invoices, and superannuation contributions. However, its limitations - batch processing, restricted operating hours, and limited data fields - are increasingly misaligned with the demands of a 24/7 digital economy.
For example, payments initiated on a Friday afternoon may not settle until Monday. Cross-time-zone transactions introduce reconciliation delays. And the lack of rich data impedes automation and fraud detection.
Enter the NPP. Launched in 2018, the platform enables real-time, data-rich payments between participating financial institutions. With over 100 institutions and 102 million accounts already enabled, the infrastructure is in place. What remains is for businesses to seize the opportunity. As partners in real-time payments, to take the pulse of the market around the shift to real-time, Westpac recently partnered with Nielsen.
The Strategic Case for Real-Time
Nielsen’s State of Real-Time Payments in Australia report, based on a survey of 113 large Australian organisations, reveals a market in motion. Nearly all respondents (99%) are aware of the shift to real-time payments. 25% of corporate Australia is real-time ready. 47% are ready to act, with customer-facing teams leading the shift. The primary motivator? Value - not compliance.
Organisations are embracing real-time payments to:
- Enhance cash flow visibility and liquidity
- Boost operational efficiency through automation, 24/7 processing and error risk via real-time validation
- Elevate customer experience and retention.
According to Leeanne Gray, “Our survey found that larger enterprises are especially bullish: 71% expect real-time payments to significantly impact their market position. This is not surprising. In a hyper-competitive environment, the ability to settle payments instantly, onboard customers seamlessly, and reconcile transactions in real-time is a powerful differentiator.”
Organisations that act early on real-time payments are also perceived as forward-thinking and customer focused. Many expect their market position to grow once they make the move to faster payments.
Competitive Readiness Is Relative
One of the most striking findings from the Nielsen research report is that readiness is not defined by industry timelines - it’s defined by value as well as peer and customer activity. The report makes clear that real-time payments deliver significant value beyond consumer transactions, extending deep into Business to Business (B2B) and enterprise operations. 48% of B2B leaders believe their customers are already transitioning to real-time.
Not only are organisations aware of customer activity, but they also have an eye on competitors. 34% say competitor actions directly influence their own readiness. In other words, organisations are benchmarking not against mandates, but against market momentum. This creates a virtuous cycle: as more players adopt real-time payments, the pressure to follow suit intensifies, with early movers generating the rewards.
Yet, 43% of organisations remain unprepared. Ironically, the very goals delaying real-time payments - market share growth, automation, cost reductions - are the areas that real-time payments can accelerate.
The Cost of Inaction
The risks of delay are real and compounding. Decision makers surveyed shared that by delaying transitioning their organisations may face:
- Rushed implementations and operational disruption
- Higher costs from maintaining legacy systems
- Reputational damage from lagging behind peers
- Missed opportunities for customer acquisition and retention.
Despite these challenges, the overall outlook is positive, with many organisations already realising the benefits of their investments in real-time payments. As one finance executive remarked to Nielsen, “If we hadn’t been an early adopter, there would have been a big volume drop-off”.
Barriers Are Real, But Solvable
Transitioning to real-time payments is not without challenges. The top four obstacles cited by survey respondents are:
- Data and payment security concerns
- Technical integration with legacy systems
- Project prioritisation conflicts
- Perceived lack of urgency until external pressure mounts.
These are legitimate concerns - but they are solvable. The key is not to treat real-time payments as a standalone IT project, but as an opportunity to drive strategic transformation by aligning the shift with broader business priorities and initiatives.
Partners in Real-Time Payments
Encouragingly, 65% of leaders feel they understand what’s required for real-time payments transformation, and 6 in 10 see their banks as critical partners - on par with executive and finance teams. That’s why Westpac developed a range of tools, guides and supports to help ensure clients have confidence and clarity on the transition to real-time:
- Real-time maturity assessments to identify gaps, opportunities and the next logical step in transition.
- Implementation toolkits, technical guides, and roadmaps for integration.
- Resources to help articulate the business case, including the benefits, within your organisation.
- Insights into peer activity, case studies, and industry benchmarks.
As Leeanne Grey puts it, “Most successful real-time transitions don’t happen in isolation - they’re embedded in broader business change. At Westpac, we’ve taken a structured, proactive approach to real-time payments transition, making sure the rollout is well-supported, and disruption is kept to a minimum. But let’s be clear—this isn’t just a systems upgrade. What we’re really talking about is a fundamental shift in how businesses operate. And Westpac is here to help clients navigate that shift with clarity and confidence.”
A Blueprint for Action
Every organisation is at a different stage and there are many entry points to transition to real-time. For organisations looking at where to start on the real-time transition journey, Westpac recommends a three-phase approach:
- Assess: Conduct a real-time maturity assessment with Westpac, map current payment flows, identify friction points, and benchmark against industry peers.
- Align: Integrate real-time payments transition into broader strategic initiatives—automation, customer experience, working capital optimisation, or an ERP system upgrade. Secure executive sponsorship and cross-functional buy-in.
- Activate: Partner with your bank and technology providers to develop a phased implementation roadmap. Prioritise high impact use cases (e.g., payroll, superannuation, supplier payments) and build internal capability.
“Westpac was able to provide us with a future state solution and share insights on what other clients have implemented. That was really helpful, and we have solved it." Executive, Superannuation Industry.
Integrated Channels and Capabilities, built for the Real-Time Era
As partners in real-time payments, Westpac offers integrated channels, real-time capabilities designed to power real-time payments.
According to Leeanne, Gray, “Westpac has invested strategically over many years to embed real-time capabilities directly into our payables and receivables platforms. This allows clients to adopt real-time capabilities with greater ease and less disruption, introducing optionality from day one and accelerating time-to-value.
“As we help clients progress through the stages of real-time transition, aligned to strategic priorities based on business use cases, we enable them to realise value and achieve competitive differentiation.”
Underpinning Westpac’s real-time payments is its robust fraud and scam protection - ensuring confidence in payments. VerifyPayee for Payments Plus, for example, enables businesses to run a check on payee details before initiating payments, alerting them to potential account number and name mismatches.
Unlocking The Real-Time Advantage
Looking ahead, Westpac One Treasury - launching in 2026/27 - will redefine how institutional clients manage liquidity, payments, and insights in real time. Built on a modern, cloud-native core, Westpac One will offer a unified digital experience that brings together real-time treasury management, FX risk management, trade finance, and lending services - all within a single, intuitive workspace.
Clients will gain instant visibility of cash positions across accounts, real-time clearing and settlement across domestic and international rails, and predictive analytics to support faster, more informed decision-making. With embedded AI and a foundational data layer designed for high accessibility, Westpac One will support next-generation treasury analytics and forecasting — helping clients move from reactive to proactive cash management.
Start now to Realise the Value of Real-Time
The shift to NPP is more than a compliance exercise - it’s a strategic imperative. Real-time payments are reshaping the business landscape, enabling organisations to move faster, operate smarter, and serve customers better.
New research from Nielsen shows that corporate Australia is on the move, with real-time a source of competitive advantage. As more organisations make the shift, the gap between early movers and late adopters will widen. Those who act now will unlock the full potential of the real-time advantage.
The infrastructure is ready. The market is moving. The question is: are you real-time ready?
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