Australia reviews payments system regulation
The Reserve Bank of Australia has launched a review of its payments system regulation, inviting stakeholder feedback on key policy issues. This follows recent legislative amendments expanding the Act's coverage.
Navigating payments innovation
The Reserve Bank of Australia (RBA) has released an Issues Paper to commence its review of payments system regulation.
The review follows amendments to the Payment Systems (Regulation) Act 1998, which expanded the legislation's coverage to include additional payment systems and participants.
The RBA is seeking stakeholder views and evidence to prioritise policy issues.
The Issues Paper highlights significant innovation in the payments landscape, which could enhance convenience, safety, and lower costs for users, while also posing potential concerns for competition, efficiency, and financial safety.
Specific questions cover merchant choice, account-to-account payments, mobile wallets, non-designated card networks, buy now pay later services, cryptography, and fraud prevention.
Shaping future payment rules
The review aims to ensure the RBA's payments system regulation continues to promote the public interest amidst rapid changes in how Australians make and receive payments.
These developments have the potential to reshape the financial landscape, necessitating a proactive regulatory approach.
Stakeholders are invited to provide written submissions by August 7, 2026.
The gathered evidence will inform the RBA's prioritisation of issues and help determine if regulatory action is warranted.
The RBA plans to publish a list of regulatory priorities by the end of 2026, with further consultation on these prioritised issues expected by mid-2027.
A broad but vital undertaking
This review is a necessary step for Australia to keep pace with global payments innovation, which often outstrips existing regulatory frameworks.
While the RBA's approach is appropriately consultative, the broad scope of the issues paper risks diluting focus on the most pressing challenges.
Effective outcomes will hinge on the RBA's ability to translate diverse feedback into targeted, impactful policy changes without undue delay.
Source: Review of Payments System Regulation
IN: