SYDNEY, August 30 (Reuters) – The Australian government is considering new laws by tech giants like Apple that will tighten regulation of digital payment services. (AAPL.O) and Alphabet’s Google (GOOGL.O).
Finance Minister Josh Frydenberg said he would “carefully consider” these and other recommendations from a government report on whether the payment system is keeping pace with advances in technology and changes in consumer demand.
Services such as Apple Pay, Google Pay, and China’s WeChat Pay, which have grown rapidly in recent years, are not currently defined as payment systems, leaving them out of the regulatory system.
“Ultimately, if we do nothing to reform the current framework, Silicon Valley alone will determine the future of our payments system, a critical part of our economic infrastructure,” Frydenberg said in an opinion piece published in the Australian Financial Review. .
The Bank for International Settlements (BIS) told global financial watchers earlier this month. to address urgently With the growing influence of ‘Big Tech’ and massive amounts of data controlled by groups like Google, Facebook, etc. (FB.O), Amazon (AMZN.O) and Alibaba (9988.HK). Read more
The Australian report recommended that the government be empowered to designate tech companies as payment providers, clarifying the regulatory status of digital wallets.
He also recommended that the government and industry together create a strategic plan for the wider payments ecosystem and develop a single, integrated licensing framework for payment systems.
The Reserve Bank of Australia (RBA), which is currently responsible for determining who is the payment services provider, reported that payments through digital wallets rose from 2% in 2016 to 8% of personal card transactions in 2019.
Commonwealth Bank of Australia (CBA.AX)Estimating that digital wallet transactions more than doubled to A$2.1 billion in March, he urged regulators to address “competition issues” and consider the security implications of their use.
Report by Paulina Duran in Sydney; Edited by Jane Wardell
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