Digital finance is more dynamic than ever, and third-party transactions are at the heart of this evolution. From sending money to friends via banking apps to using payment platforms for business, Australians are increasingly reliant on third parties to facilitate, secure, and record their financial moves. But as our digital footprint expands, so does the importance of understanding how these transactions work—and how to stay protected in 2025.
What Are Third-Party Transactions?
Third-party transactions involve a party other than the buyer and seller who helps process, validate, or settle a payment. This could mean:
- Paying a tradie using PayPal, Stripe, or Square
- Receiving wages via a payroll provider
- Transferring funds to family through a neobank or fintech app
- Making online purchases using Afterpay or Zip
The third party acts as a bridge, ensuring the transaction is completed efficiently, securely, and—ideally—without errors or fraud.
Major Trends in 2025: Open Banking, Digital Wallets, and Real-Time Settlements
This year, several trends are reshaping the third-party transaction landscape in Australia:
- Open Banking Expansion: The Consumer Data Right (CDR) regime is now in its fourth phase, meaning more institutions (including superannuation funds and insurers) must share data with accredited third parties at the customer’s request. This allows consumers to initiate payments and manage multiple accounts across providers from a single platform, streamlining third-party transactions and boosting competition.
- Digital Wallet Integration: Apple Pay, Google Pay, and Samsung Pay are now accepted by 97% of major Australian retailers, with new security layers like biometric authentication and AI-powered fraud monitoring. Digital wallets are fast becoming the default way to pay, especially for Gen Z and Millennials.
- Real-Time Payment Networks: The New Payments Platform (NPP) now processes most third-party payments instantly, including Osko and PayID transactions. In 2025, the Reserve Bank has mandated all banks to offer 24/7 real-time settlement, reducing the risk of delayed or failed transfers.
These shifts mean that third-party transactions are faster and more flexible—but also require new vigilance around data and security.
Security and Fraud: What’s New in 2025?
As digital payment volume soars, so do fraud attempts. In response, regulators and platforms have rolled out new protections:
- Mandatory Multi-Factor Authentication (MFA): For all third-party payment platforms handling over $100,000 monthly, MFA is now a regulatory requirement. This adds a crucial layer of protection against account takeover.
- Enhanced Scam Detection: Banks and third-party apps now use AI to detect unusual patterns, such as large transfers to new payees, and will automatically flag or delay suspicious transactions for review.
- Consumer Rights and Chargebacks: The Australian Competition and Consumer Commission (ACCC) updated its ePayments Code in late 2024, giving consumers more power to reverse unauthorised or mistaken payments processed by third parties—provided they report issues within tighter timeframes.
For example, if you accidentally transfer money to the wrong account using a fintech app, you now have up to 7 days (down from 14) to notify your provider and trigger the reversal process. This puts the onus on consumers to act quickly, but also strengthens the safety net when things go wrong.
How Australians Can Stay Safe with Third-Party Transactions
While regulation and technology are improving, personal vigilance is still your best defence. Here are practical tips for 2025:
- Always enable MFA on all payment and banking apps.
- Check recipient details carefully—especially with new payees or business partners.
- Monitor your transaction history weekly for any unauthorised activity.
- Use digital wallets or payment apps that offer buyer protection and robust customer support.
- Report any suspicious activity or payment errors immediately to your provider.
As open banking makes it easier to link accounts and share data with third parties, always review app permissions and know exactly what data you’re authorising them to access.
Looking Ahead: The Future of Third-Party Transactions
Third-party transactions are set to become even more seamless as Australia pushes toward a cashless, open-data economy. In the coming years, expect even tighter integration between banks, fintechs, and payment platforms, alongside more sophisticated fraud detection systems. But as the digital ecosystem grows, so does the responsibility on each of us to stay informed and proactive about our financial security.
