The Australian government announced on Wednesday that it intended to submit legislation giving the central bank the authority to control companies that offer digital wallet services.
Since they are not now recognised as payment systems, China’s WeChat Pay, Apple Pay, and Google Pay—all of which have experienced rapid growth in recent years—fall outside of Australia’s financial regulatory framework.
The Reserve Bank of Australia would be able to monitor digital wallet payments in the same manner as credit card networks and other transactions are monitored under the proposed guidelines. Additionally, it would give the treasurer the authority to ask regulators to look into whether certain payment platforms pose threats to the nation.
According to treasury documents, the draft would broaden the meanings of “payment system” and “participant” in Australia’s current statutes.
With the argument that customers only use their phones to utilise cards provided by banks to make payments, Google and Apple have been fighting the government’s effort to designate them as payment providers.
The government is asking for comments on the proposed legislation from interested parties till November 1. This year, the legislation is anticipated to be presented to the legislature.
