The Australian Government declared that it would place Apple Pay, Google Pay, and other digital payment methods under the same guidelines and jurisdiction as credit cards.
As part of legislation slated to be brought to parliament this week, the Australian government announced on Monday that it would place digital payment services like Apple Pay, Google Pay, and others under the same regulatory jurisdiction as credit cards and other forms of payment.
Despite their explosive growth in popularity, digital wallets from companies like Apple, Google, and Tencent, the developer of WeChat, are not covered by Australian payments law.
The proposal, which was initially mentioned last month, will extend the reach of the Reserve Bank of Australia’s regulatory authority over payments to include new and developing technologies.
Treasurer Jim Chalmers stated in a statement, “We are modernizing Australia’s payments system to ensure it meets the needs of our economy now and into the future.”
“We want to make sure the increasing use of digital payments occurs in a way that helps promote greater competition, innovation, and productivity across our entire economy.”
According to Chalmers’ office, legislation is scheduled to be introduced on Wednesday or Thursday.
The quick rise in popularity of digital payment methods, particularly among youth, has regulators taking notice. Digital wallet transactions increased from 10% of all card transactions in early 2020 to 35% in the June quarter.
Digital payments are used by two-thirds of Australians between the ages of 18 and 29. Less than 20% existed before the pandemic.
The reforms will also grant the relevant minister the authority to impose further scrutiny on a system or platform if there’s a chance it could pose a risk to “national significance.”
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