Australia to regulate digital payment systems via new RBA powers

AUSTRALIA plans to regulate digital payment platforms including Apple Pay and Google Pay under new laws that provide the Reserve Bank of Australia (RBA) with additional powers, the government said.

Up to 35 per cent of credit card transactions in Australia were conducted via digital payments in the three months till June, with mobile wallet use expanding among all demographics, according to RBA figures.

The government on Wednesday (Oct 11) will release for public consultation new legislation to regulate digital payments that aim to update the country’s existing regulations.

Under the changes, the RBA will oversee new payment systems, including digital wallets, while ministers will obtain additional powers to crack down on services or platforms that are deemed to present risks of national significance. The new laws are expected to be brought before parliament by the end of 2023.

Treasurer Jim Chalmers said Australia’s payment system needed to be brought up to speed to ensure it was fit for purpose for small businesses and consumers.

“We want to make sure the shift to digital payments occurs in a way that promotes greater competition, innovation and productivity across our entire economy,” he said. BLOOMBERG