Following consultation in June 2023, the government is updating the Payment Systems (Regulation) Act 1998 to ensure regulators and government can address new risks related to payments as the provision of payments evolves and increases in complexity.
The updates include:
- Expanding the definitions of “payment system” and “participant” to ensure the Reserve Bank of Australia has the ability to regulate new and emerging payment systems, such as digital wallet providers and Buy Now Pay Later service providers.
- Introducing a new ministerial designation power that will allow particular payment services or platforms that present risks of national significance to be subject to additional oversight by appropriate regulators.
The government welcomes comments or feedback from stakeholders on the draft legislation and explanatory materials.