Apple Pay / Apple

Asian Tech Press (Aug 30)-- The Australian government is considering new laws to tighten regulation of digital payment services from tech giants such as Apple and Google, Reuters reported.

Australian Finance Minister Josh Frydenberg said he would "carefully consider" this and other ideas in the government-commissioned report to determine whether the payments system is keeping pace with technological advances and changing consumer needs.

Apple Pay, Google Pay and WeChat Pay have grown rapidly in recent years, but they have remained outside the regulatory system.

The Australian government believes they have the right to designate technology companies as payment providers and clarify the regulatory status of digital wallets. The commissioning report also recommended that the government and industry work together to develop a broader strategic plan for the payments ecosystem and a single, integrated licensing framework for the payments system.

In an opinion piece published by the Australian Financial Review, Frydenberg said, "Ultimately, if we don't reform the current framework, it will be only Silicon Valley that determines the future of our payments system, but it just so happens that this is a key part of our economic infrastructure."

The Reserve Bank of Australia (RBA) reported that the share of payments made through digital wallets rose to 8% of face-to-face card transactions in 2019, up from 2% in 2016.