PayID vs BSB: Which Do You Need?

PayID vs BSB: Two Ways to Send Money in Australia

If you are making a payment or receiving money within Australia, you have likely come across both BSB numbers and PayID. Both are used to route payments between bank accounts, but they work in very different ways and are suited to different situations. Understanding when to use each can save you time, reduce errors, and keep your banking details more private.

What is a BSB Number?

A BSB (Bank-State-Branch) number is a six-digit code in the format XXX-YYY that identifies a specific branch of an Australian financial institution. Every bank, credit union, and building society operating in Australia has one or more BSB numbers assigned to it.

BSB numbers are the traditional backbone of Australian domestic payments. They are used by the Bulk Electronic Clearing System (BECS) -- which handles direct debits, salary payments, and most automated transfers -- as well as the newer New Payments Platform (NPP) for real-time payments.

To send someone money using a BSB, you need three pieces of information:

• Their BSB number (identifies the bank and branch)
• Their account number (identifies their specific account)
• Their account name (for verification)

What is PayID?

PayID is a feature of the New Payments Platform (NPP) that allows you to link an easy-to-remember identifier to your bank account instead of sharing your BSB and account number. A PayID can be:

• Your mobile phone number (the most common choice)
• Your email address
• Your ABN (Australian Business Number)
• An organisation ID

When someone wants to pay you using PayID, they simply enter your PayID (for example, your phone number) into their banking app. The system looks up the linked bank account and routes the payment directly -- no BSB or account number required. Before the payment is sent, the payer sees a confirmation of your name, which helps prevent payments being sent to the wrong person.

PayID was launched in 2018 as part of Australia's NPP and is supported by all major banks and most smaller financial institutions.

Key Differences

When You Need a BSB Number

BSB numbers remain essential for many common payment scenarios:

Salary and Wages

Most employers require your BSB and account number to set up payroll deposits. While some payroll systems are starting to support PayID, BSB-based salary payments are still the standard across Australian workplaces.

Direct Debits

If you set up automatic bill payments, loan repayments, or subscription charges, the billing company will need your BSB and account number. Direct debits operate through the BECS system, which requires BSB-based routing. PayID does not support direct debit arrangements.

Government Payments

Tax refunds from the ATO, Centrelink payments, and other government transfers typically require your BSB and account number.

Receiving International Transfers

If someone overseas is sending you money, they will need your BSB number (along with your bank's SWIFT code and your account number). PayID is a domestic-only system and cannot receive international transfers.

Business Invoicing

When paying a business invoice, the payment details on the invoice will almost always include a BSB and account number. Most business-to-business payments in Australia still use BSB-based transfers.

When PayID is the Better Choice

PayID shines in situations where convenience and privacy matter:

Sending Money to Friends and Family

Splitting a dinner bill, paying back a friend, or sending a birthday gift? PayID is the easiest option. Just enter their phone number or email in your banking app and the money arrives in seconds.

One-Off Payments to Individuals

If you are paying a tradesperson, a private seller, or anyone else for a one-time transaction, PayID lets them receive payment without sharing their full bank account details with you.

Privacy

With PayID, you only need to share your phone number or email address rather than your BSB and account number. The payer never sees your actual bank account details, which reduces the risk of your account information being stored in multiple places.

Speed

PayID payments are always processed through the NPP, which means they arrive in the recipient's account within seconds -- 24 hours a day, 7 days a week, including weekends and public holidays. BECS-based BSB transfers, by contrast, can take one to two business days.

Reducing Errors

When you pay via PayID, the system confirms the recipient's name before you send the payment. This name-check feature helps prevent payments being sent to the wrong account due to incorrect BSB or account numbers -- a common problem with traditional transfers.

Can You Use Both?

Yes. PayID and BSB numbers are not mutually exclusive. Your bank account has a BSB and account number regardless of whether you have registered a PayID. Setting up a PayID simply adds an additional, more convenient way for people to send you money.

Many Australians have a PayID registered for receiving quick payments from friends, while still providing their BSB and account number for salary deposits, direct debits, and other situations where BSB is required.

Security Considerations

Both payment methods are secure, but they differ in what information is exposed:

• BSB payments require sharing your BSB number and account number with the payer. While BSB numbers are not sensitive (they identify branches, not individuals), your account number is specific to you. Once shared, you have no control over where that information is stored.

• PayID payments only require sharing your phone number or email address. Your actual bank account details are never revealed to the payer. If your phone number is already publicly known, using it as a PayID does not expose any new information.

Neither system requires you to share your internet banking password or PIN. Never share these details with anyone, regardless of the payment method.

Which Banks Support PayID?

All four major Australian banks support PayID:

• Commonwealth Bank (CommBank)
• Westpac
• ANZ
• National Australia Bank (NAB)

Most other Australian financial institutions also support PayID, including Bendigo Bank, Bank of Queensland, Macquarie Bank, ING, Up, and many credit unions and building societies. You can register your PayID through your bank's mobile app or online banking.

Summary

BSB numbers and PayID are both valuable tools in the Australian payments system. Use a BSB number when you need to set up direct debits, receive your salary, accept international transfers, or pay business invoices. Use PayID when you want a quick, private way to send or receive money from individuals without sharing your full bank account details. For most Australians, having both set up gives you the flexibility to handle any payment situation.