Australia’s government is planning to regulate digital wallet providers like Apple and Google similarly to other payment services.
As mobile wallet usage continues to increase, the government is set to amend the Payment Systems (Regulation) Act 1998. This update will redefine ‘payment’ and ‘payments systems’ to include new methods.
These changes will empower the Reserve Bank of Australia to oversee digital wallet providers and introduce a Ministerial designation power. This will enable regulators to impose additional scrutiny on specific services or platforms that pose “risks of national significance.”
Treasurer Jim Chalmers emphasized the goal of ensuring that the transition to digital payments fosters greater competition, innovation, and productivity across the economy.
The draft legislation is currently open for public consultation and is anticipated to be presented to parliament later this year.
This initiative is part of Australia’s broader strategic payments plan, which aims to phase out cheques by the end of the decade, fully transition to the New Payment Platform, maintain access to cash, and explore the potential for a central bank digital currency (CBDC).