Account-to-Account & Contactless Payments with Pebl

Running a business in Australia today often means shelling out more money than you should just to get paid.

Traditional card-based systems hit you with interchange and scheme fees, processor margins and settlement delays. For small and medium-sized businesses, those costs add up quickly.

But there’s another way. Account-to-account (A2A) payments move money directly between bank accounts with no card network or hidden fees.

Thanks to innovations like PayID and the New Payments Platform (NPP), they’re fast, secure and already mainstream.

In this article, you’ll learn:

• What A2A payments are and why PayID matters
• How the costs compare with card payments and payment processors
• What customers and businesses are saying
• How Pebl helps you offer both A2A and contactless payments seamlessly.

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Account-to-Account Payments 

The A2A model transfers funds directly from one bank account to another, bypassing the card networks or traditional “card machine” payment processors.

Payments are normally initiated via a bank’s online banking facility, mobile app or through an alias like PayID.

In Australia, many A2A payments happen through the New Payments Platform (NPP), which offers near real-time settlement. 

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About Pay ID

PayID is a payment-addressing service for the NPP. Instead of giving your customers a long BSB + account number, you can provide them with a simple alias, like your business mobile phone number, email or ABN. The payer enters your PayID and the system resolves to your bank account.

In practical terms, a customer might pay your business by selecting “pay using phone” or “pay by bank transfer (PayID)” instead of tapping a card. You receive the funds directly into your bank account (or through a payment processor) and don’t incur the same card-network fees or waiting periods.

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The Benefits of the A2A Model

For businesses, this model offers several advantages: faster access to funds, a lower processing cost, simpler reconciliation and a customer experience that can match the convenience of contactless payments with Pebl’s transparent pricing.

From the customer’s side, it removes the need to enter card details, potentially reduces fraud risk (since the receiver is visible before payment) and supports paying via a phone or mobile banking. This is exactly the kind of “pay using phone” flow that customers increasingly prefer. 

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Cost Savings: A2A vs Card Payments and Payment Processors

One of the strongest arguments for A2A payments is the cost-saving potential compared to traditional card-based payments.

When you accept card or contactless payments, you typically use payment processors who charge:

• An interchange fee to the card-issuing bank
• A scheme fee for Visa or Mastercard
• A payment processor margin
• Possibly terminal rental or software fees.

These are all passed on to you, the merchant, often at 0.4–1.35% or more per transaction depending on risk, card type and business vertical.

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A2A Payments Cost Model

By contrast, A2A payments use bank transfer rails and typically don’t incur card scheme fees. That means fees may be lower or even nil, depending on your bank or payment processor partner.

Settlement to your account happens more quickly, especially real-time via NPP, and since you bypass card networks, you reduce dependence on “payment processors” in the card-machine sense.

The Reserve Bank of Australia (RBA) has found that real-time payments are delivering hundreds of millions in savings for businesses and consumers through reduced fees and faster settlement. 

The shift is also being strongly supported by regulators, with AusPayNet’s 2025 consultation on the future of A2A payments emphasising cost-effective, reliable, accessible solutions.

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What This Means for Your Business

By providing an A2A option (via PayID) alongside your traditional card or contactless payments offering, you reduce your payment costs per transaction and get funds into your account more quickly, improving cash flow. 

You also give customers a convenient “pay using phone” or bank transfer option, which future-proofs your payment model as more consumers move away from cash and even cards.

And it offers you flexibility, as you’re not forced to rely solely on card payment processors.

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Customer & Business Experiences

How Customers Feel

A growing number of Australians are comfortable paying via mobile or digital methods, with 44% of in-person payments made via mobile wallets in Oct 2024. 

Additionally, more than 28 million PayIDs were registered by August 2025, covering consumers and businesses. 

How Businesses are Benefiting

Utilities and retailers report simpler invoice flows and lower admin costs with PayID.

Wagepay has reduced reconciliation time by 99% using PayTo, and SMEs report fewer chargebacks and faster access to funds, strengthening cash flow.

Key Takeaways

Based on feedback from customers and businesses, we recommend that you:

• Offer A2A as one of your payment options (but not necessarily the only option) to give customers choice
• Promote the ease of “pay using phone/PayID”
• Monitor uptake and compare savings with your card processor
• Ensure your back office can handle both flows without extra overhead.

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Bringing It All Together with Pebl

At Pebl, we believe you shouldn’t have to choose. You can offer both A2A and card payments, reconcile them seamlessly and simplify your operations.

With Pebl, you can:

• Offer A2A via PayID or a bank transfer
• Accept cards (tap, contactless, mobile wallet)
• Manage all transactions in one dashboard
• Sync with Xero
• Prioritise A2A for cost-sensitive transactions
• Keep more revenue thanks to transparent pricing.

Implement A2A with Pebl by following these steps:

1. Register a PayID for your business account (using an alias like your ABN, mobile number, or email) by following the steps with your bank.
2. Sign up for Pebl and select both card and A2A payment capabilities.
3. Link your PayID or bank transfer details into the Pebl dashboard.
4. Configure your checkout templates to show both “Pay by card (tap/contactless)” and “Pay via bank (PayID)”.
5. Enable Xero integration so both card and A2A payments feed into your accounting system.
6. Monitor reports and communicate the benefits to customers. Highlight the new “pay via bank/PayID” option as a fast, secure, low-cost alternative.

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Why Pebl is a complete solution

By combining both payment types, Pebl offers:

• Flexibility: You’re not locked into one method
• Efficiency: One dashboard, one reconciliation flow
• Cost-effectiveness: Reduced reliance on card-only processors
• Future proofing: Regulation will continue to favour low-cost digital rails. 

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FAQs — Your Questions Answered

Are account-to-account payments really “free”?
While many A2A payments carry minimal or no transaction fee, “free” often depends on your bank or payment service provider. You’ll avoid most of the card-network fees, but always check any flat fees or platform fees from your provider.

Will my customers accept paying via PayID or bank transfer instead of a card?
Many will, especially if you make it simple and clearly labelled “Pay using phone/bank”.The key is offering both: don’t force the change, give the choice.

What about reconciliation and accounting?
With Pebl, you integrate both card and A2A payments into your Xero workflow so your books stay clean. Ensure your bank feed or dashboard captures the incoming A2A payments and tags them appropriately.

Are A2A payments safe and reliable?
Yes. The NPP infrastructure is designed for near real-time payments, and PayID adds a layer of identity verification and reduces errors. As with all payments, best practice around fraud prevention applies.

Do I still need card payments?
Probably yes. Many customers expect to be able to tap a card or pay through a mobile wallet. What A2A does is give you a lower-cost alternative for many transactions. It’s not about replacing cards entirely, but giving you choice and margin flexibility.

How quickly do I get funds with an A2A payment?
If the payment is via the NPP (or your bank supports real-time settlement), funds can become available very quickly, often within seconds or minutes, and the service is available 24/7. This is a major improvement over typical card settlement times. 

What should I watch out for when adopting A2A payments?
Some key considerations:

• Ensure your payment service provider supports the necessary infrastructure (e.g., PayID, NPP).
• Communicate clearly to customers how to use the payment option.
• Monitor uptake and whether customers are comfortable with it.
• Make sure your reconciliation process is robust, so you don’t end up with unchecked banking records.
• Evaluate your existing card-processor contracts to see how much you’ll save by switching a portion of transactions to A2A.

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Next Steps

Account-to-account payments are no longer a fringe option. They’re a growing part of the payment ecosystem in Australia and offer compelling advantages for businesses that act now.

With Pebl, you don’t have to pick between card payments and A2A. You can have both, integrated, efficient and tied into Xero for seamless accounting.

By acting now, you position your business to reduce costs, improve cash flow, enhance customer experience and stay ahead of the payments curve. Let’s get started.

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