RBA Governor Discusses Evolving Payments Landscape at Merchant Risk Council Conference

Head of Payments Policy at the Reserve Bank of Australia (RBA), Ellis Connolly, delivered an insightful speech at the Merchant Risk Council (MRC) Conference in Melbourne. The RBA has been actively engaged in modernizing the regulatory framework and will launch a thorough review of retail payments regulation.

The Payment Systems (Regulation) Act is undergoing reform to include newer players such as payment gateways, BNPL services, and digital wallet providers. These changes aim to promote efficiency, safety, and competition in the payments system.

Devika Shivadekar, an economist at AMP, along with analysts from CBA, NAB, and Westpac, provided insights into the expected stability of interest rates following the latest RBA meeting, as reported by Reuters. The RBA’s focus on enhancing the New Payments Platform and fostering international collaborations with ASEAN-5 countries highlights a push for innovation in the payment sector.

Additionally, discussions around tokenisation, security measures to combat card-not-present fraud, and the evolution of payment services by tech giants like Apple Pay and Google Pay were prominent. The increasing competition between e-commerce platforms like Shopify, Squarespace, WooCommerce, and Wix in the provision of payment services raised key questions on market competition.

AusPayNet’s efforts in standardizing token portability and supporting token synchronisation were highlighted by the RBA. The push for surcharging BNPL services and the proposed regulatory changes to bring BNPL providers under ASIC’s supervision reflect ongoing debates on the cost and transparency of payment services in Australia.

Overall, the evolving payments landscape and upcoming regulatory changes in the Australian payment sector underscore a dynamic shift towards promoting efficiency, competition, and security in the digital payments ecosystem.