expectations. we want to see a payments system that is a hotbed of innovation and competitive tension, driving efficiency up and costs down. and we want to see a payments system that is safe and resilient – one that australians can rely on. as we contemplate what shape the payments system of the future might take, my colleagues and i at the rba and on the payments system board are committed to working constructively with auspaynet and the wider industry. we are in this together. there is much to celebrate in the australian payments system, but as i ’ ve made clear today, also much to do. on that note, i look forward to taking your questions. thank you. endnotes * i would like to thank my colleagues in payments policy department for their valuable assistance in the preparation of these remarks. all errors of omission and commission are my own. more formally, the payments system board ’ s responsibilities and powers are set out in four separate acts. these are : reserve bank act 1959 ; payment systems ( regulation ) act 1998 ; payment systems and netting act 1998 ; and cheques act 1986. the reserve bank act, as amended, gives the payments system board responsibility for determining the rba ’ s payments system policy. it must exercise this responsibility in a way that will best contribute to : controlling risk in the financial system ; promoting the efficiency of the payments system ; and promoting competition in the market for payment services, consistent with the overall stability of the financial system. council of financial regulators ( 2024 ), ‘ quarterly statement by the council of financial regulators – december 2024 ’, media release no 2024 - 05. bullock m ( 2023 ), ‘ modernising australia ’ s payments system ’, speech to the australian payments network summit, sydney, 12 december. bulk payment functionality allows payment instructions to be grouped together and sent as a single payment file, supporting efficient processing of large volumes of payments ( compared with sending each payment individually ). bulk payments are widely used by government departments and companies for regular payments such as welfare, salary and dividend payments and the payment of bills. becs is a technologically simpler solution than modern payment rails. while this simplicity means that it is no longer fit for purpose for many payment use cases, it does have some desirable features. in particular, end users do not expect instant payments processing across becs. when operational issues affect availability of the service, the payments can be delivered in a subsequent batch settlement without

v e b a n k o f au s t r a l i a cross - border payments i ’ ll now turn to the topic of cross - border payments. australian businesses and households that undertake international activities need efficient and safe ways to send and receive money. but cross - border payments services are still more expensive, more opaque and slower than their domestic counterparts. enhancing cross - border payments is therefore one of the payments system board ’ s strategic priorities and an international commitment for australia under the g20 roadmap. a recent review by the financial stability board indicated that much more progress is needed to move toward the g20 roadmap cost targets. 10 lowering the cost of cross - border payment services has proven challenging almost everywhere. in australia, we estimate that the average cost of sending a $ 1, 000 to other countries still significantly exceeds the relevant g20 targets ( graph 5 ). 11 graph 5 international money transfer costs * as a proportion of a a $ 1000 transfer from australian accounts % % advanced economies developing economies average * * banks non - banks average * * banks non - banks retail average cost target remittance average cost target * estimates based on quotes from online calculators at september 2024 ; sample includes 22 currencies, 4 major banks and 10 non - banks. * * weighted by market share. sources : accc ; online calculators ; rba. however, the cost of sending money overseas from australia can vary significantly across providers. banks are generally more expensive than non - bank providers, reflecting the size of the mark - ups they typically apply to the wholesale foreign exchange rate. by contrast, there are some non - bank digital providers offering prices that are around, or a bit below, the g20 target levels. these differences highlight the importance of transparency over prices and of customers shopping around. 12 the speed of cross - border payments is another area where more progress is required. bank - intermediated cross - border transactions often take a day or more to reach the recipient. slow processing reflects a range of factors including differing operating hours, inconsistent payments messaging practices, and complex compliance checks. making use of the new npp international payments service, which allows the final australian dollar leg of inbound cross - border payments to be processed on a near real - time 24 / 7 basis, will help. there are also a range of iso 20022 messaging initiatives where more progress is needed. 13 achieving international consistency in the data carried in payments messages will reduce the need