New payments system rules welcomed by banks

Australia’s banks welcome the passing through the Senate of new legislation to ensure payments laws are up-to-date and reflect today’s digital economy.

The new laws will bring digital wallets, cash distribution services, buy now, pay later schemes and other emerging payment methods within regulatory oversight, significantly enhancing protections for customers.

ABA CEO Simon Birmingham said this was an important step in ensuring Australia maintains a modern and efficient payments system.

“Australia’s payments system has rapidly evolved in recent years, especially with the surge in popularity and use of mobile wallets,” Mr Birmingham said.

“It’s clear payments rules haven’t kept pace with new and emerging payments technologies. For the first time, digital wallets and other new payment methods will now be captured within Australia’s regulatory framework.

“This is welcome progress and means global tech companies will be subject to the same oversight and consumer protection laws as the rest of the payments system.

“It’s only fair and reasonable that no matter how you pay, whether you tap your bank card or your mobile phone, you are afforded the same consumer protections.

“These new rules lay the foundation for a modern and innovative payments environment, giving Australians confidence that new payment methods are safe, reliable, and properly regulated. “Banks are committed to working closely with government and the RBA to ensure the new laws are implemented smoothly and deliver real benefits for consumers and the broader economy.”