Australians are one of the world’s biggest users of online banking, just as we were the first country to embrace ATMs. EFT (electronic funds transfer) is also very big in Australia, and the BPAY consortium, owned by the Big Four banks, is widely used to pay bills.

But now PayPal is becoming increasingly available as a payment option. It is no longer just used for eBay transactions (it is owned by eBay), but is striking up deals all around the world that are making it a rival to traditional banks. In the European Union it is a bank, registered in Luxembourg.

Now PayPal has announced a deal in Australia with utility company Australian Power & Gas and Telstra to allow bill payments via PayPal online and on mobile. “Nearly half of all Australians having incurred a late fee as a result of forgetting to pay a bill,” said Andrew Rechtman, Director of Strategy for PayPal Australia. “We’re seeing an increased demand by consumers for real-time, digital payments, with mobile serving as a critical channel for utility providers.

“At PayPal, we’re proud to be working with utility providers such as Australian Power & Gas and Telstra to enable faster, more secure and seamless payment infrastructure, bringing bill payments in line with the technology Australian customers have come to expect.”

David Goadby, General Manager, Retail, at Australian Power & Gas said the partnership marked the company’s continued investment in innovation, providing their customers with more payment options to help them better manage their energy bills.

“By partnering with PayPal, Australian Power & Gas is able to deliver more convenient payment options for our customers no matter where they are. As a growing number of consumers turn to digital payments to manage their bills, we are committed to providing greater choice and flexibility for our customers.”

The partnership with Australian Power & Gas follows the recent announcement of PayPal payments launching with Telstra, allowing PayPal’s 5 million active Australian customers who are also Telstra customers to pay their Telstra bills online and via the Telstra 24x7 mobile applications using their PayPal digital wallet.

PayPal has indicated that it will sign similar deals in Australia with other suppliers. With the parallel growth in mobile payments, the world is changing very quickly.