Review calls for payment system changes

·1-min read

The way Australians pay for their goods at stores has seen a technological revolution in recent years with the introduction of payment methods such as digital wallets.

But while this is providing increased convenience and opportunities, it is also giving rise to greater complexity and new risks.

The federal government has released the final report of its payments system review which examined whether it is still fit for purpose and to ensure that Australia is well-placed to take advantage of new technologies.

The review conducted by lawyer and payments expert Scott Farrell made 15 recommendations in three areas.

It calls for greater government oversight and powers to protect the payments system and, in partnership with industry, establish a strategic plan for the wider payments ecosystem.

It also urges co-ordination between payment regulators, such as the Reserve Bank of Australia, to be strengthened and for regulation to be implemented to improve consistency and certainty.

Thirdly, it recommends an integrated licensing framework for payment services that scales up with businesses as they grow, to provide clear consumer protection and transparency.

"The government will carefully consider the recommendations and observations made in the review," Treasurer Josh Frydenberg said.

"Consultation on the recommendations will be conducted by Treasury ahead of the government finalising a response before the end of the year."

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