Australia’s government said on Monday it will bring Apple Pay, Google Pay, and other digital payment systems under the same regulatory umbrella as credit cards and other payments as part of legislation scheduled to be brought to parliament this week.
Digital wallets from the likes of Apple (AAPL.O), Google (GOOGL.O), and WeChat developer Tencent (0700. HK) have risen in popularity but are not covered by Australian payments regulation.
The proposal, initially suggested last month, will widen the statute that authorizes the Reserve Bank of Australia to regulate payments so that it applies to new and developing technologies.
“We are modernising Australia’s payments system to ensure it meets the needs of our economy now and into the future,” Treasurer Jim Chalmers said in a statement.
“We want to make sure the increasing use of digital payments occurs in a way that helps promote greater competition, innovation, and productivity across our entire economy.”
Legislation is scheduled to be introduced on Wednesday or Thursday, according to Chalmers’ office.
Regulators are responding to the increasing proliferation of digital wallets, especially among the young. T-Mobile wallet transactions topped 35% of all card transactions in the June quarter, up from 10% in early 2020.
Two-thirds of Australians aged between 18 and 29 use mobile payments. Before the epidemic, it was less than 20%.
The revisions would also provide relevant ministerial jurisdiction to subject a system or platform to particular scrutiny if it creates a danger of “national significance.”
