Media Release Strategic Review of Innovation in Australia's Payments System

As announced in its Media Release of 28 May 2010, the Payments System Board is undertaking a strategic review of innovation in the Australian payments system. The objective is to identify areas in which innovation in the Australian payments system may be improved through more effective co-operation between stakeholders and regulators. It will take a medium-term perspective, looking at trends and developments overseas in payment systems and at possible gaps in the Australian payments system that might need to be filled through innovation over a time horizon of five to ten years. The goal is ultimately to identify projects that the Bank and other stakeholders could work on co-operatively to enhance the payments system in Australia.

To meet this objective, the review will:

1. review how payment instruments, including cash, are currently being utilised in Australia and how this has changed over the past few years;
2. review payments system innovation in Australia and other countries and identify the factors driving that innovation;
3. identify areas where Australia appears to be lacking innovation and potential gaps in payments system services over the next five to ten years;
4. assess whether difficulties with co-operation in the Australian payments industry are likely to make filling these gaps difficult; and
5. identify ways in which any such gaps in payments services can be addressed.

The Reserve Bank is now calling for initial consultation. Interested parties are invited to share with the Bank, either in writing or in person, their views on any of the above issues. The Bank is seeking views from all stakeholders, including payments system participants, small and large businesses, consumers and government.

Parties wishing to engage with the Bank on these issues should contact the Head of Payments Policy Department (details below).