Industry seeks swift update to payments regulation for digital age
The Australian Banking Association (ABA) has expressed support for the passage of the Payments System Modernisation Bill through the House of Representatives, describing the move as a necessary step to update Australia’s payments regulation.
The industry body is now calling on the Senate to approve the bill without delay.
The legislation is designed to extend regulatory oversight to digital wallets, cash distribution services, buy now, pay later products, and other new payment technologies.
Approval of the bill will consequently mean that mortgage payments made through digital wallets and new payment platforms will also be subject to the same regulatory standards as traditional methods, ensuring greater consumer protection and consistency, regardless of how borrowers pay their mortgages.
Commenting on the passage of the bill through the House, Simon Birmingham (pictured right), chief executive of the Australian Banking Association, also highlighted the scale of digital wallet use and the need for regulation to keep pace.
“Australians made around $160 billion in payments using mobile wallets last year alone, yet our payments rules have not had a significant refresh in more than 25 years,” he said. “These laws must evolve and bring Australia’s outdated payments regulation into the digital age.
“Currently, our payments system laws date back to a world of cheques, swipe cards, and dial-up internet. It’s time they reflect the dramatic shift in the way consumers make payments. The explosion of digital wallets in everyday transactions means regulation must catch up. Consumers should have the same protections whether they tap their bank card or their mobile phone.
“This is about having consistent rules across all payment providers. Under this legislation, tech giants offering mobile wallets will need to meet the same standards as banks and other regulated payment services. The ABA urges the Senate to prioritise the swift passage of this bill, ensuring our payments system regulation remains in line with the realities of Australia’s digital economy.”
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