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
19 months ago
In other words, Visa and MC are crying and trying to flex their lobbying power.
Score: 12 Votes (Like | Disagree)
RedWing512 Avatar
19 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
19 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
19 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
19 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
19 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

iPhone trade in

Apple Adjusts Trade-In Values for iPhones, Macs, and More

Wednesday January 25, 2023 9:40 am PST by
After announcing new Mac and HomePod models last week, Apple adjusted its trade-in values for select devices in the United States. iPhone trade-in values decreased by up to $80, and most Android smartphones also went down. Mac trade-in values remained unchanged or increased by up to $40 depending on the model, while some Apple Watch models increased in value and others decreased. Trade-in...
iPhone 14 Pro Purple Side Perspective Feature Purple

iPhone 15 Pro Expected Later This Year With These 7 Exclusive Features

Tuesday January 24, 2023 4:53 pm PST by
Apple's next-generation iPhone 15 Pro and iPhone 15 Pro Max are expected to be announced in September as usual. Already, rumors suggest the devices will have at least seven exclusive features not available on the standard iPhone 15 and iPhone 15 Plus. An overview of the seven features rumored to be exclusive to iPhone 15 Pro models:A17 chip: iPhone 15 Pro models will be equipped with an A17...
Mac mini M2 2023

New 256GB Mac Mini and 512GB MacBook Pro Have Slower SSD Speeds Than Previous Models

Tuesday January 24, 2023 1:11 pm PST by
While the new Mac mini with the M2 chip has a lower $599 starting price, the base model with 256GB of storage has slower SSD read and write speeds compared to the previous-generation model with the M1 chip and 256GB of storage. A teardown of the new Mac mini shared by YouTube channel Brandon Geekabit reveals that the 256GB model is equipped with only a single 256GB storage chip, while the...
apple tv 4k red image

Apple Releases tvOS 16.3

Tuesday January 24, 2023 10:10 am PST by
Apple today released tvOS 16.3, the third major point update to the tvOS 16 operating system that originally came out in September. Available for the Apple TV 4K and Apple TV HD, tvOS 16.3 comes six weeks after tvOS 16.2, an update that added Apple Music Sing. The tvOS 16.3 update can be downloaded over the air through the Settings app on the ‌‌‌‌Apple TV‌‌‌‌ by going to System > Software...
watchOS 9 Feature

Apple Releases watchOS 9.3 With New Watch Face, Bug Fixes

Monday January 23, 2023 10:06 am PST by
Apple today released watchOS 9.3, the third major update to the watchOS 9 operating system that first launched in September. watchOS 9.3 comes over a month after watchOS 9.2, an update that added new Workout functionality and Crash Detection optimizations. watchOS 9.3 can be downloaded for free through the Apple Watch app on the iPhone by opening it up and going to General > Software Update. ...
iOS 16

iOS 16.3 for iPhone Launching Next Week With These 4 New Features

Friday January 20, 2023 11:43 am PST by
In a recent press release, Apple confirmed that iOS 16.3 will be released to the public next week. The software update will be available for the iPhone 8 and newer and includes a handful of new features, changes, and bug fixes. Below, we've recapped bigger features in iOS 16.3, including support for physical security keys as a two-factor authentication option for Apple ID accounts, worldwide ...
maxresdefault

Hands-On With the New M2 Pro Mac Mini

Tuesday January 24, 2023 1:45 pm PST by
The new M2-series MacBook Pro and Mac mini models launched today, marking the debut of the first M2 Pro and M2 Max chips. We have the M2 Pro Mac mini on hand, and thought we'd take a look at the machine and do a series of benchmarks to see how it fits into Apple's lineup. Subscribe to the MacRumors YouTube channel for more videos. Base model Mac mini machines come with either an M2 or M2 Pro...
Ventura Macs Feature Blue

Apple Releases macOS Ventura 13.2

Monday January 23, 2023 10:09 am PST by
Apple today released macOS Ventura 13.2, the second major update to the macOS Ventura operating system initially released in October. macOS Ventura 13.2 comes more than a month after macOS Ventura 13.1, an update that added the Freeform app and other changes. The ‌macOS Ventura‌ 13.2 update can be downloaded for free on all eligible Macs using the Software Update section of System...