Australian Government Wants To Amendment Digital Payment Service Regulations

Australian Finance Minister Jim Chalmers (photo: x @JEChalmers)

The Australian government announced on Monday 27 November that it will bring digital payment services such as Apple Pay, Google Pay, and similar services under the same regulatory umbrella as credit cards and other payments. This step was taken as part of the regulations scheduled to be proposed to parliament this week.

Digital wallets from companies like Apple, Google, and WeChat developer Tencent have skyrocketed in popularity, but are currently not regulated by Australian payment laws. This legislation plan, which was first announced last month, will expand Reserve Bank of Australia's powers to regulate payments to include new and emerging technologies.

"They are modernizing Australia's payment system to ensure that this system meets our economic needs now and in the future," Australian Finance Minister Jim Chalmers said in a statement. "We want to ensure the ever-increasing use of digital payments occurs in a way that helps promote greater competition, innovation and productivity across our economy."

The legislation plan is scheduled to be intensified on Wednesday or Thursday, according to the Chalmers office.

Regulators responded to the rapid growth of digital wallets, especially among young people. Transactions from digital wallets reached 35% of all card transactions in the quarter of June, up from 10% in early 2020.

Two-thirds of Australia's population between the ages of 18 and 29 used mobile payments. Prior to the pandemic, the figure was less than 20%.

The amendment will also give the minister the authority to oversee the system or platform in particular if it is considered to have the risk of "national design."