Apple Pay and other mobile wallet platforms will face increased regulation in Australia in the near future. According to Reuters, Australia is planning to regulate Apple Pay in the same way that credit cards and other forms of payment are.
According to the report, the new regulation will be implemented later this week. The legislation will be a supplement to the existing legislation. Existing legislation allows the Reserve Bank of Australia to regulate and oversee payments in Australia.
Apple believes that the proposed expansion will increase the regulatory burden without providing a net public benefit. And also causes a regulatory error, and stifles the dynamic innovation that has characterized Australia’s payment system in recent years.
Apple Pay can only be used with an existing third-party debit, credit, or prepaid card. Apple does not have access to the account of a cardholder to determine whether funds are available. Apple does not collect any transaction information when it offers Apple Pay.
The Reserve Bank of Australia will be able to regulate digital wallet providers such as Apple and Google as it currently regulates credit cards under the new legislation. There is currently no clear roadmap outlining what changes the Reserve Bank of Australia may impose on Apple if they intend for any changes.