The Australian government is investigating new legislation to strengthen the regulation of digital payment systems provided by companies such as Apple and Google Alphabet. Treasurer Josh Frydenberg said he would “seriously consider” that and other suggestions from an assessment that a government has imposed on whether the payment system is keeping up with technological advances and changes in customer demand.
Services such as Apple Pay, Google Pay and China’s WeChat Pay, which have grown rapidly in recent years, are not currently designed as payment plans, putting them outside the system. “Ultimately, if we do not do something to improve the current system, it will only be Silicon Valley that determines the future of our payment system, an important part of our economic infrastructure,” Frydenberg said in a press release. in the Australian Business Review newspaper. .
The Bank for International Housing (BIS) earlier this month called for global financial regulators to be quick to grasp with the growing influence of ‘Big Tech’, and a large amount of data managed by groups such as Google, Facebook, Amazon and Alibaba. The Australian government recommended the government give it the power to select technology companies as payment providers, explaining the regulatory status of digital wallets. He also recommended that the government and the industry jointly develop a strategic plan for a broader ecosystem and that a unified, integrated licensing process for payment systems is being developed.
The Reserve Bank of Australia (RBA), which is currently in charge of selecting a payment services provider, reported that payments through digital wallets have grown to 8 per cent of people’s credit card transactions in 2019, from 2 per cent in 2016. The World Bank of Australia, which estimates digital wallet transactions more than doubled annually to March to A $ 2.1 billion, has urged regulators to address “competitive issues” and plan the safety risks of using them.