As the global payments ecosystem surges with more ways to pay digitally, Australia’s band of banks believe it is time to update legislation to match the speed technology is changing our lives.
On average, consumers are making over 500 million transactions using their mobile wallet per month. Australia’s payments regulatory framework should encompass all modern products and services verifying citizens for e-commerce payments as the landscape rapidly evolves. This involves updating phrases used in the Payment Systems (Regulation) Act of 1998 for example, ‘payments’ changing to ‘payments systems’, to reflect its umbrella meaning for a range of sophisticated capabilities.
Reserve Bank of Australia will be granted powers to regulate tech companies including giants like Apple and Google who have developed their own commercial wallets and recreate a “level playing field” for payments operators and non-bank competitors, as well as protect consumers.
Regulations have not evolved for over 25 years when physical face-to-face payments says ABA CEO Anna Bligh.
Big payment wallets are still part of the ecosystem that have to comply with what is expected today in terms of privacy, security and user experience. Australia plans to follow the EU in regulating public and commercial mobile wallets so the payments ecosystem is “fit-for-purpose”.
“It’s only fair that global tech companies are subject to the same oversight and consumer protection laws as the rest of the payments system” Bligh continues.
The ABA infers the government has been “dragging its foot” on the issue which was raised for a policy change 4 years ago.
Reforms to the Payment Systems (Regulation) Act 1998 are contained within the Treasury Laws Amendment (Miscellaneous Measures) Bill 2024.
