Review of Payments System Regulation

Why It Matters

The review could reshape Australia’s payments landscape, influencing competition, consumer costs, and financial‑system safety as digital payments proliferate. Early stakeholder input will guide any regulatory reforms that affect banks, fintechs, and merchants alike.

Key Takeaways

• RBA expands regulatory scope to new payment systems and participants
• Stakeholders must submit evidence by 7 August 2026
• Issues paper examines merchant choice, A2A, mobile wallets, BNPL
• Potential regulatory actions could reshape competition and fraud prevention
• RBA will release priority list by end‑2026, consult further mid‑2027

Pulse Analysis

Australia’s payments ecosystem is at a crossroads, driven by rapid adoption of real‑time transfers, mobile wallets, and buy‑now‑pay‑later (BNPL) products. The Reserve Bank of Australia’s decision to update the Payments Systems (Regulation) Act 1998 reflects a broader global trend of modernising legacy frameworks to accommodate fintech innovation. By widening the Act’s reach, the RBA aims to ensure that emerging services operate within a clear, consistent regulatory environment, reducing systemic risk while fostering competition.

The Issues Paper released on 25 June 2026 outlines four thematic pillars: merchant choice of payment methods, the rise of account‑to‑account (A2A) payments versus traditional card networks, the proliferation of mobile wallets and non‑designated card schemes, and the role of cryptography in fraud mitigation. Stakeholders—including banks, fintech firms, merchant associations, and consumer groups—have until 7 August 2026 to submit written evidence. This consultation will feed directly into the RBA’s priority‑setting process, with a formal list of regulatory focus areas expected by the end of 2026 and a second round of detailed consultation slated for mid‑2027.

For industry participants, the review signals both opportunity and uncertainty. Firms that can demonstrate robust security, transparent pricing, and consumer‑centric innovation may benefit from a more supportive regulatory stance, while those relying on opaque practices could face tighter oversight. The outcome will likely influence market entry dynamics, pricing structures, and the competitive balance between traditional banks and agile fintech challengers. Keeping abreast of the RBA’s evolving priorities will be essential for any organization looking to thrive in Australia’s next‑generation payments market.