ACCC Supports Payment System Reforms Amid Apple Criticism

Highlights:

• ACCC Supports New Payment System Legislation: The Australian Competition and Consumer Commission (ACCC) backs legislation that would enable regulators, including the RBA, to oversee digital wallet providers like Apple Pay.
• Banks Facing Digital Payment Barriers: With 70% of transactions now digital, ACCC Chair Gina Cass-Gottlieb highlights the challenges faced by banks in offering convenient tap-and-go services across all devices.
• Commonwealth Bank CEO Criticizes Apple: Matt Comyn accuses Apple of "free-riding" on Australian banks' infrastructure for mobile payments and calls for regulatory scrutiny of the terms Apple imposes on banks.

The Australian Competition and Consumer Commission (ACCC), led by Chair Gina Cass-Gottlieb, has voiced strong support for upcoming legislation aimed at giving regulators more control over payment platforms. At the annual ASIC Forum, Cass-Gottlieb emphasized the importance of new frameworks to better regulate payment systems, especially digital wallets.

Strengthening Regulatory Oversight

At the time of writing, the Australian government’s proposed reforms to the payments system remain in limbo, with the legislation expected to either pass or be delayed in the coming weeks. The new rules would empower the Reserve Bank of Australia (RBA) to regulate digital wallet providers, such as Apple Pay, in the same manner as traditional credit card networks. Cass-Gottlieb stressed that these changes are critical for ensuring fair competition and efficiency in the growing digital payments sector.

Banks’ Digital Payment Challenges

With 70% of all transactions now happening digitally, Cass-Gottlieb noted that banks are struggling to offer seamless tap-and-go services across all digital platforms, which presents a significant challenge for both consumers and the broader economy. Her comments come amid rising tensions between Australian banks and tech giants like Apple.

Apple Under Scrutiny

The latest calls for regulatory scrutiny follow remarks from Commonwealth Bank of Australia (ASX: CBA) CEO Matt Comyn, who accused Apple of "free-riding" on Australian banks’ infrastructure to facilitate tap-and-go payments. Comyn urged regulators to examine the terms Apple imposes on banks wishing to access its systems for mobile payment services.

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