Australia’s Banks Push For Fast Action On Payments Law
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Australia’s banks are asking the government to quickly pass a new law that will update the country’s payment rules. This comes as digital payments grow rapidly, with more people using mobile wallets to pay for goods and services.
According to the Reserve Bank of Australia, customers are now using mobile wallets to make over 500 million transactions each month. These payments make up to more than $20 billion. The banks say in managing this big change of how people pay, the country needs new rules.
The New Law Will Cover More Payment Services
The Treasury of Australia has suggested new regulations to make sure all financial payments and services follow same laws. The point is to transform the payment systems Act 1998. This will include new payment system in the law.
The Australian banking association ABA, revealed that the new law gives the reserve Bank of Australia the singular authority to direct all payment firms, including large technical companies like Apple and Google. The banks believe the new innovation will make all businesses in the payment system to be fairly treated.
The chief Executive Office of ABA, Anna Bligh explained that over the years there has been a big change in payment methods. She stated that when the current law was created in 1998, online shopping was not popular, mobile phones were not widely used for payments and people mostly used cash and cheques.
Other Countries Are Recognizing Mobile Wallets As Payment Services
Bligh pointed out that places like the European Union already see mobile wallets as part of the payments system. She said it is time for Australia to do the same. Australians are now making over 500 million payments each month using mobile wallets. Bligh said it is important for these payments to be covered under the law.
She also stated that global tech companies like Apple and Google should follow the same rules as banks. This will help make sure that customers are protected and that all payment companies follow the same laws.
The ABA has criticised the government for taking too long to act. The group noted that these changes were first suggested four years ago, but no action has been taken yet.
Bligh further said the government should pass the reforms as soon as possible. She added that these changes were first discussed over 1,200 days ago, and banks cannot wait any longer for new rules.
The reforms will be included in the Treasury Laws Amendment (Miscellaneous Measures) Bill 2024. Banks hope the government will pass the new law soon to keep Australia’s payment system fair and up to date.
