RBA to regulate digital payments under new laws
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The news: Apple, Google Pay and other digital payments and providers will be regulated in line with EFTPOS and credit cards under proposed laws drafted by Treasury. The laws will update definitions of 'payments' and 'payment systems', empower the RBA to regulate new and emerging payment systems, and create a new ministerial power for oversight of payment services or platforms that 'present risks of national significance'.
The numbers: The value of smartphone payments in Australia soared from $746 million in 2018 to more than $93 billion in 2022, according to Australian Banking Association data. Over the same period, the number of mobile wallet transactions jumped more than 8000% from 29.2 million to 2.4 billion. Cheques, which now only make up 0.2% of non-cash payments, will be phased out by 2028 under the government's payments plan.
The context: The popularity of digital wallets and tap-and-go payment technologies has soared in recent years in an unregulated environment, raising some concerns about security and competition. The draft legislation on increased regulation was released today for consultation.
What they said: "The plan sets out a vision for a modern, world class and efficient payments system that is safe, trusted and accessible, enabling greater competition, innovation and productivity," Treasurer Jim Chalmers said in a statement.
