Under current rules, the central bank cannot demand data from technology firms, subject them to price regulation or impose rules relating to smartphones access.
The RBA does not have the power to regulate them under existing payments lawsThe Reserve Bank should urgently be handed more powers to curtail the growing influence of technology companies in finance, Commonwealth Bank has urged in its submission to a Treasury review of payments.
Digital wallets have “transformed a linear payments value chain consisting of predominantly financial institutions into a complex ecosystem involving a diverse range of participants”, the submission, obtained byThe RBA currently regulates payments under 25-year-old legislation. This means it cannot demand data from technology firms, subject them to price regulation like credit card companies, or impose rules relating to smartphones access.
Apple, Google, Meta, and Tencent offer smartphone payments – often connected to bank cards – that are an increasingly popular way of buying goods and services. CBA said 47 per cent of all in-store payments are made with digital wallets, with spending up 36 per cent over the year to April. The new licensing regime could subject the tech players to rules requiring them to hold capital against payments moving over their systems; a consultation paper on the extent of potential capital requirements is expected this year.The tech giants are expected to oppose the moves.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
‘Very close call’: Economists split on RBA cash rate decisionAMP Chief Economist Shane Oliver says economists are split on whether the RBA will hold or lift the cash rate on Tuesday. “It is a very close call … on the one hand services inflation is still too high, the Reserve Bank is very concerned about wages growth and of course, the job markets is still very tight,” Mr Oliver told Sky News Australia. “Against all of that, we did see those lower-than-expected inflation numbers … the inflation rate is actually falling faster than the Reserve Bank expected.”
Read more »
Lowe should give Bullock a breatherOPINION: If the RBA board believes that the cash rate is likely to rise further over the next six months, the imperative should be to get it done before the new governor chairs her first meeting in October.
Read more »
'Let down Australia': Woeful Wallabies thrashed again“We let down Australia”. The Wallabies were given a harsh reality check by the All Blacks in Melbourne last night – just weeks before the start of the Rugby World Cup. MATCH REPORT: 9News
Read more »
Major bank’s double blow to borrowers days out from rates decisionOne of Australia’s biggest banks has increased its fixed rates for borrowers for the second time in just over a week. 7NEWS
Read more »
Aussie family’s belongings sold from storage facility: ‘Completely devastating’7NEWS: Aussie family’s heartbreaking plea after precious possessions sold at auction
Read more »
Aussie family’s belongings sold from storage facility: ‘Completely devastating’A western Sydney family have made a plea for the return of some of their most precious possessions after they were abruptly sold at an auction. 7NEWS
Read more »