Australia to pass legislation to regulate digital payment services
Australia to pass legislation to regulate digital payment services
Australia is planning to consider a bill to ensure that the central bank has the right to regulate digital wallet providers. This will primarily affect Apple Pay, Google Pay, and WeChat Pay.
Digital payments through Apple Pay and Google Pay have become widespread in recent years but are not registered as payment systems, which excludes them from Australia's financial regulatory system. According to Australian authorities, the development of the regulatory framework has not kept pace with changes in the financial industry, especially in the digital economy.
According to Reuters, if the government passes the bill, the Reserve Bank of Australia (RBA) will be able to control payments through digital wallets, similar to credit card payments. The financial watchdog will also gain the power to monitor payment systems and initiate inspections by regulators.
"Australia is addressing the risks posed by new digital payment services, which are currently unregulated, to protect consumers, promote competition, and spur innovation in the industry," said Jim Chalmers, head of Treasury.
The bill states that it will expand the definitions of "payment system" and its "participants" in existing Australian laws.
According to statistics from a report by the Australian Banking Association, the number of mobile wallet transactions has increased from 29.2 million in 2018 to 2.4 billion in 2022.
However, Google and Apple disagree with the government's decision to recognize them as payment providers, arguing that users simply use their smartphones to pay with cards issued by banks.
The government will wait until November 1 to receive feedback on the bill from stakeholders.
Read also: Brazil's Congress intends to indict Binance executives.
