Australia's payments board resumes review of retail payments regulations: RBA's Lowe

[SYDNEY] Australia's Payments System Board has resumed its periodic Review of Retail Payments Regulation in Australia after putting it on hold during the coronavirus pandemic, Reserve Bank of Australia (RBA) Governor Philip Lowe said on Monday.

Speaking at an 'Australian Payments Network' event in Sydney, Mr Lowe said the board was yet to reach any final conclusions on the issues being discussed, adding RBA staff will meet with industry participants over the next few months.

"If, at the conclusion of the review, we are to make changes to the standards it is our intention to consult on these by mid-2021," Mr Lowe said.

In discussing issues from transaction fees to buy-now-pay-later (BNPL) providers, Mr Lowe said the board did not see a strong case for a significant revision of the interchange framework in Australia.

It is also unlikely to conclude that BNPL providers should be required to remove their no-surcharge rules right now, Mr Lowe said.

"The board's preliminary view is that the BNPL operators in Australia have not yet reached the point where it is clear that the costs arising from the no-surcharge rule outweigh the potential benefits in terms of innovation," Mr Lowe said.

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REUTERS