Australia’s banking sector is calling on the government to urgently pass legislation updating the country’s payments regulatory framework to keep pace with the rapid rise of digital payments. The Reserve Bank of Australia reports that Australians now make over 500 million mobile wallet payments monthly, totaling more than $20 billion.
The Australian Treasury has proposed sweeping reforms to modernize the Payment Systems (Regulation) Act 1998, expanding the definition of ‘payment’ and ‘payments systems’ to include emerging digital payment methods. These changes aim to bring global tech giants like Apple and Google under the same regulatory oversight as traditional banks, ensuring a level playing field.
Anna Bligh, CEO of the Australian Banking Association (ABA), emphasized the need for updated regulations, noting that the current laws were designed in 1998 when cash and checks dominated. “Mobile wallets are now a dominant force in Australia’s payments landscape, and it’s imperative that they are regulated to ensure consumer protection and fair competition,” she said.
Bligh also highlighted that jurisdictions like the EU have already recognized mobile wallets as part of their payments systems, urging Australia to follow suit. She criticized the government for delays, pointing out that the reforms were first proposed over 1,200 days ago.
The proposed reforms are included in the Treasury Laws Amendment (Miscellaneous Measures) Bill 2024, which the ABA hopes will be passed during the current parliamentary session.