Banks welcome passage of Payments System Modernisation Bill through the House of Representatives

The Australian Banking Association (ABA) have welcomed the passage of the Payments System Modernisation Bill through the House of Representatives. The legislation will help ensure Australia’s payments regulatory framework is brought up-to-date and urges the Senate to quickly pass this overdue legislation too.

The proposed legislation will bring digital wallets, cash distribution services, buy now, pay later schemes and other emerging payment methods within regulatory oversight, significantly enhancing protections for consumers.

ABA CEO Simon Birmingham welcomed this progress to update and modernise the rules within Australia’s payments system.

“Australians made around $160 billion in payments using mobile wallets last year alone, yet our payments rules have not had a significant refresh in more than 25 years,” Birmingham said.

“These laws must evolve and bring Australia’s outdated payments regulation into the digital age.

“Currently, our payments system laws date back to a world of cheques, swipe cards, and dial-up internet. It’s time they reflect the dramatic shift in the way consumers make payments.

“The explosion of digital wallets in everyday transactions means regulation must catch up. Consumers should have the same protections whether they tap their bank card or their mobile phone.

“This is about having consistent rules across all payment providers. Under this legislation, tech giants offering mobile wallets will need to meet the same standards as banks and other regulated payment services.

“The ABA urges the Senate to prioritise the swift passage of this Bill, ensuring our payments system regulation remains in line with the realities of Australia’s digital economy,” Birmingham ended.