Australia Continues to Scrutinize Apple Pay Amid Push for Regulation

The government of Australia is considering creating new laws that could more heavily regulate digital payments systems such as Apple Pay, Google Pay, and WeChat Pay (via Reuters).

Apple Pay Feature
An Australian government-commissioned report into digital payments systems has made a number of recommendations, one of which suggested actively regulating ‌Apple Pay‌ and other similar digital payments services. Speaking to the Australian Financial Review, Treasurer Josh Frydenberg said that the recommendations would be carefully considered:

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.

Under current Australian law, the likes of ‌Apple Pay‌ are not classified as payment systems, putting them outside payment regulations. Classifying ‌Apple Pay‌ as a payment system would clarify the regulatory status of digital wallets in Australia and allow the government to explicitly designate big tech companies as payment providers.

Other recommendations, contingent on classifying ‌Apple Pay‌ as a payment system, look to establish a strategy for the country's wider payments ecosystem with a single, integrated licensing framework.

Australian banks such as the Reserve Bank of Australia and the Commonwealth Bank of Australia have previously raised concerns around the growth of digital wallets with "competition issues" and purported safety implications. Earlier this year, an Australian Parliamentary Committee considered forcing Apple to open up the iPhone's NFC chip to support third-party payment systems in an effort to promote competition.

Note: Due to the political or social nature of the discussion regarding this topic, the discussion thread is located in our Political News forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Top Rated Comments

Mrjetsondc Avatar
30 months ago
In other words, Visa and MC are crying and trying to flex their lobbying power.
Score: 12 Votes (Like | Disagree)
RedWing512 Avatar
30 months ago
If the Australian government doesn't like it, then Apple is doing something right.
Score: 10 Votes (Like | Disagree)
Expos of 1969 Avatar
30 months ago
The Australian Government should have put a bit of effort into purchasing and administering vaccines rather than this perhaps...
Score: 10 Votes (Like | Disagree)
840quadra Avatar
30 months ago

"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."

Exactly this.
Also agree to open up NFC, as in, force Apple to open up NFC.
What would be the benefit of opening NFC?

Personally I am not 100% up to speed on the tech, but one of the biggest draws to a closed NFC and randomized payment system is the security. I don't want to go back to worrying about people cloning my CC after using a skimmer.
Score: 9 Votes (Like | Disagree)
miniyou64 Avatar
30 months ago
Government wanting their hand in everything despite the fact that they are without fail totally incompetent? Hmmm couldn’t be
Score: 8 Votes (Like | Disagree)
jace88 Avatar
30 months ago

Australian banks such as the Reserve Bank of Australia and the Commonwealth Bank of Australia have previously raised concerns around the growth of digital wallets with "competition issues" and purported safety implications.
I don’t know if it’s really fair to call the RBA a bank in the same context as say Commonweath Bank, a for profit retail bank. The RBA is the central bank for Australia (ie a fundamentally different role to a typical bank, like the US Fed) and also is tasked with regulating payments, so their view is going to be somewhat different to a typical participant in the sector.
Score: 7 Votes (Like | Disagree)

Popular Stories

iOS 17

iOS 17.2 Will Add These 12 New Features to Your iPhone

Friday December 1, 2023 12:19 pm PST by
iOS 17.2 has been in beta testing for over a month, and it should be released to all users in a few more weeks. The software update includes many new features and changes for iPhones, including the dozen that we have highlighted below. iOS 17.2 is expected to be released to the public in mid-December. To learn about even more features coming in the update, check out our full list. Journal ...
iOS 17

Apple Releases iOS 17.1.2 With Security Fixes

Thursday November 30, 2023 10:12 am PST by
Apple today released iOS 17.1.2 and iPadOS 17.1.2, small updates to the iOS 17 and iPadOS 17 operating systems that Apple introduced in September. iOS 17.1.2 and iPadOS 17.1.2 come a few weeks after the release of iOS 17.1.1, another bug fix update. iOS 17.1.2 and iPadOS 17.1.2 can be downloaded on eligible iPhones and iPads over-the-air by going to Settings > General > Software Update....
iOS 17

28 New Things Your iPhone Can Do in December's iOS 17.2 Update

Friday December 1, 2023 2:57 am PST by
Apple made the first beta of iOS 17.2 available to developers in October. Since then we've seen three more betas, and with each iteration Apple continues to add more new features and changes, many of which users have been anticipating for quite a while. Below, we've listed 28 new things that are coming to your iPhone when the finalized version is publicly released this December. 1. Help...
apple card 1

Apple Ending Apple Card Partnership With Goldman Sachs

Tuesday November 28, 2023 3:09 pm PST by
Apple is ending its credit card partnership with Goldman Sachs, according to The Wall Street Journal. Apple plans to stop working with Goldman Sachs in the next 12 to 15 months, and it is not yet clear if Apple has established a new partnership for the Apple Card. Apple and Goldman Sachs will dissolve their entire consumer partnership, including the Apple Card and the Apple Savings account....
iOS 17

Everything New in iOS 17.2 Beta 4

Tuesday November 28, 2023 12:18 pm PST by
Apple is wrapping up development on iOS 17.2, with the update expected to come out in December. While we're getting to the end of the beta testing period, Apple is still tweaking features and adding new functionality. We've rounded up everything new in the fourth beta of iOS 17.2. Default Notification Sound Under Sounds & Haptics, there's a new "Default Alerts" section that allows you to ...
iPhone 16 Mock Header Updated 1

iPhone 16 to Include Action Button Across Entire Lineup

Thursday November 30, 2023 4:08 pm PST by
The release of the iPhone 15 Pro and Pro Max saw the introduction of an entirely new user-configurable button known as the Action button, and now, MacRumors has seen extensive evidence confirming Apple is planning to include the Action button on the entire iPhone 16 range. Designs and plans for the Action button date back to at least 2021, as the button was intended for release alongside hapt...
anker new xmas

Anker's Cyber Week Sale Enters Final Days With Up to 60% Off Sitewide

Friday December 1, 2023 12:05 pm PST by
Anker's Black Friday/Cyber Week event is entering its final days this weekend, and it's still offering up to 60 percent off sitewide. There are also a few "mystery boxes" that can include hundreds of dollars in savings, if you're willing to risk not knowing what you're buying ahead of time. All of these sales will end on December 3. Note: MacRumors is an affiliate partner with Anker. When you...
paramount plus logo

Apple and Paramount Considering Discounted TV+ Streaming Bundle

Friday December 1, 2023 4:40 am PST by
Apple and Paramount have discussed bundling their TV streaming services at a discount, according to a new report by The Wall Street Journal. The companies have talked about offering a combination of Paramount+ and Apple TV+ that would cost less than subscribing to both services separately, according to people familiar with the discussions. The discussions are in their early stages, and it is ...
General Apps Messages

Green Bubbles on iPhone to Gain These 7 New Features Next Year

Thursday November 30, 2023 9:00 am PST by
Earlier this month, Apple announced that it will finally support RCS in the Messages app on the iPhone starting later next year. This change will result in several improvements to the messaging experience between iPhones and Android devices. RCS will become the new default standard for messaging between iPhones and Android devices, but these conversations will still have green bubbles like...