The NSW government is intending to introduce by the end of the year a new payments platform for Service NSW that will include support for PayPal as well as Apple Pay when it becomes available in Australia.
"Today, people still have to deal with out-of-date payment methods when transacting with government agencies," NSW Minister for Finance, Services and Property Dominic Perrottet said in a statement.
"While consumers and businesses are embracing newer forms of payment, many public sector agencies are stuck in the past, limited by old infrastructure."
Work on the Payments Services Platform has begun and Azuron has been engaged for the project, the minister said.
Although Service NSW is intended to be the initial user of the platform, it will eventually be made available to all state government agencies.
"This solution will reduce duplication of payments infrastructure, streamline payment processes and deliver value for money," Perrottet said.
Reforming the current system will considerably improve the way we do business. This will help keep costs down across all agencies and opens the door for more innovation in consolidating, standardising and digitising the multiple billing platforms that exist across government."
Service NSW launched in 2013 as a way of centralising public access to state government services. In last year's budget the NSW government revealed its plans to beef up the service provider, earmarking $324 million for the agency including a $190.5 million transfer from Roads and Maritime, with motor registries to be transformed into Service NSW centres.