At its meeting today, the Payments System Board discussed a number of issues, including:
considering various policy options and re-engaging with stakeholders over recent months. The
Board discussed some possible policy responses to the major issues raised in the Review, particularly
related to dual-network debit cards and least-cost routing, interchange benchmarks and caps, and the
no-surcharge rules of buy now, pay later providers. The staff will step up information gathering and
consultation meetings over coming months as the Bank develops draft conclusions for the
Review.
submission to the Review and considers it timely to review the overall regulatory framework, including
elements that have been largely unchanged since the late 1990s.
firms are increasingly offering payments services and have transformed the payments industry in some
emerging economies. In Australia, the use of mobile wallets offered by some bigtech firms has grown
strongly in recent years, although most card payments are still made using a physical (plastic) card.
The involvement of these firms in payments has the potential to promote a more efficient payments
system by delivering services that meet the needs of end users. But it may also give rise to a range of
complex issues for the industry and regulators in the period ahead.
settlement facility licensed to operate in Australia. The Bank’s assessment will be published in
coming weeks.
discussed ASX’s revised timeline of April 2023 for implementation of the replacement system and
confirmed the Bank’s expectations
of ASX in relation to the new system. It emphasised the need for the replacement system
to be implemented as soon as this can safely be achieved by ASX and users of CHESS. The Board is concerned about the recent operational issues affecting CHESS and ASX’s trading
systems and will be working to understand if there are systematic underlying issues.
