(6 February 2025 – Australia) Australia’s banks are calling on the government to fast-track legislation to modernise the country’s payments regulatory framework, as digital transactions surge.
The Reserve Bank of Australia reports that Australians now make over 500 million mobile wallet payments each month, totalling more than $20 billion.
The Treasury has proposed extensive reforms to the Payment Systems (Regulation) Act 1998, broadening the definitions of ‘payment’ and ‘payment systems’ to cover emerging digital methods. The changes would allow the RBA to regulate all players in the payments ecosystem, including tech giants like Apple and Google, ensuring fair competition with non-bank providers.
Anna Bligh, CEO of the Australian Banking Association (ABA), highlights the urgent need for regulatory updates.
“The payments system has rapidly evolved, yet regulations have not been updated for over 25 years,” says Bligh. “When the current laws were made in 1998, cash and cheques were the dominant payment methods, internet shopping didn’t exist, and mobile phones still had antennas.”
She notes that other jurisdictions, such as the EU, have already recognised mobile wallets as part of the payments system, and Australia must follow suit.
“Australians are now making 500 million payments each month with mobile wallets, and it’s imperative that these payments are captured within the regulatory framework,” she says. “With mobile wallets becoming a dominant force in Australia’s payments architecture, 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.”
The ABA also criticised the government for delays, pointing out that these reforms were proposed four years ago.