Regulation Revolution: Apple Pay and Other Payment Apps Get a Makeover!
SYDNEY: The Australian government said on Monday it will bring Apple Pay, Google Pay and other digital payment services under the same regulation as credit cards and other payments as part of legislation to be introduced to parliament this week.
Digital wallets from the likes of Apple, Google and WeChat developer Tencent have exploded in popularity, but are not covered by Australia’s payments law.
The legislation, first announced last month, expands legislation that gives the Reserve Bank of Australia powers to regulate payments to cover new and emerging technology.
“We are modernizing Australia’s payments system to ensure it meets the needs of our economy now and into the future,” Treasurer Jim Chalmers said in a statement.
“We want to ensure that the increasing use of digital payments happens in a way that promotes competition, innovation and productivity across our economy.”
According to Chalmers’ office, the legislation is scheduled to be introduced on Wednesday or Thursday.
Regulatory authorities are responding to the rapid growth of digital wallets, especially among young people. Digital wallet payment transactions accounted for 35% of all card transactions in the June quarter, compared to 10% at the beginning of 2020.
Two-thirds of Australians aged 18-29 use mobile payments. Before the pandemic, it was less than 20 percent.
The amendments also give the relevant minister the power to subject a system or platform to special controls if it poses a risk of “national importance”.
