The Australian Banking Association (ABA) has welcomed the passage of the Payments System Modernisation Bill through the House of Representatives.
With this bill, Australia’s regulatory framework will be able to remain up to date and competitive with other jurisdictions’ digital innovations.
“These laws must evolve and bring Australia’s outdated payments regulation into the digital age.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,” said ABA CEO Simon Birmingham.
“It’s time they reflected 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.”
Birmingham emphasised that Australia’s payments system has not seen a major update in over 25 years.
With around $160 billion in payments made through mobile wallets last year, the new legislation will ensure the system is modernised to keep pace with the digital age.
“The ABA urges the Senate to prioritise the swift passage of this bill, ensuring our payments system regulation remains aligned with the realities of Australia’s digital economy,” Birmingham concluded.
