Australia has tightened its rules to govern Big Techs during the last year. New rules are being considered by the government to control digital payment services such as Apple Pay.
According to Reuters, Australian Treasurer Josh Frydenberg stated that he would “seriously consider” that and other suggestions from a government-commissioned investigation examining whether the payments system had kept up with improvements in technology and changes in customer demand.
“Ultimately, if we do nothing to reform the current framework, it will be Silicon Valley alone that determines the future of our payments system, a critical piece of our economic infrastructure,” Frydenberg said in an opinion piece published in the Australian Financial Review newspaper.
The Australian study proposes that the government be granted the authority to designate tech companies as payment providers and that the government and industry collaborate on a strategy plan to build an integrated licensing framework for payment systems.
According to the Reserve Bank of Australia, digital wallet payments accounted for 8% of in-person card transactions in 2019, up from 2% in 2016.
Consumers used their digital wallets, such as Apple Pay, more often than traditional wallets to pay in stores in March, according to a FIS research. Last year, mobile digital wallet payments eclipsed cash payments for in-store transactions for the first time on a worldwide scale.
According to the analysis, cash usage fell 10% in 2020, accounting for only one-fifth of all face-to-face payments globally. The usage of cash for in-store purchases has decreased by 50% or more in Canada, the United Kingdom, France, Norway, Sweden, and Australia.
For the time being, it’s unknown when or how Australia will begin enforcing these new rules, or how businesses like Apple, Google, and WeChat would respond. The essential thing to consider here is how these new rules may assist customers and companies rather than stifle the growth of the digital payment services industry.