Media Release Payments System Board Update: May 2017 Meeting

At its meeting today, the Payments System Board discussed the issues arising from the Bank's recent consultation on dual-network cards and mobile wallet technology. The consultation was in response to concerns about possible restrictions on the ability of card issuers and wallet providers to provision both networks on dual-network debit cards for use by cardholders. Such restrictions could have the effect of reducing competition and efficiency in the payments system. Following discussion with industry participants through the consultation process, the Bank has received commitments from relevant participants that address these concerns. These commitments, which will be shared with industry participants, should facilitate greater choice and convenience in the payment options available to cardholders through mobile devices and improve the ability of merchants to encourage the use of lower-cost payment methods. Given this outcome, the Board does not see a need for regulation at this point. The Bank will continue to monitor developments in mobile payments.

The Board discussed the recent final report by the Productivity Commission on Data Availability and Use, and the announcement in the recent Commonwealth Budget that the Government intends to introduce an open banking regime in Australia to provide consumers with better access to and control over their banking data. Members noted the potential benefits for competition and efficiency in the payments system of consumers having better access to their banking and payments data and the ability to share it securely with other service providers.

The Board discussed an assessment of Australia's real-time gross settlement system – the Reserve Bank Information and Transfer System (RITS) – against relevant international standards. The Bank will publish this assessment in coming weeks.

The Board also discussed a range of issues raised in the Council of Financial Regulators' recent consultation on safe and effective competition in cash equity settlement in Australia. The Council is preparing a report for the Government on this issue.