Australia's payments system is fundamental to the operation of the national economy. We have never had more ways to pay.
As a nation of early adopters, Australians have been quick to embrace new payment technologies. However, global technology companies play an increasingly prominent yet opaque role in how Australians access and use payment services.
Moving from cash to card has seen a massive shift within our payments system. On average Australians use a credit or debit card 540 times a year and non-cash payments worth nearly $300 billion are made every business day.
The House of Representatives Standing Committee on Economics has today presented its report—A Level Paying Field—for the inquiry into schemes, digital wallets and innovation in the payments sector.
This inquiry has shown Australians want and deserve to have confidence in a payment system that is simpler, competitive, transparent and delivers a fairer deal.
The inquiry received 48 submissions and heard evidence from key stakeholders at public hearings about the current state of Australia's payment system.
The committee heard concerns regarding the growing complexity of card-related payment fees and the impact those costs can have on small businesses. It looked at the market power of major card schemes and the increasing influence of digital wallet providers. It also considered the opportunities presented by account-to-account payment systems, emerging payment technologies and new forms of digital money such as stablecoin.
This report presents 16 recommendations aimed at reducing payment costs for consumers and small businesses, ensuring that savings are passed through to merchants and consumers, and improving oversight of the payments system. The recommendations promote more transparent fee structures, better access to payment infrastructure for new entrants in the sector, and the continued development of alternative payment methods such as account-to-account payments and stablecoins.
Committee Chair, the Hon Ed Husic MP said, 'Australians deserve a simpler, easier to understand payment system, one that's open to competition and delivers a fairer deal for small businesses and consumers.
'Strong competition often drives new ways of doing things. Equally, innovation delivers its greatest benefits when markets remain open, transparent and contestable.
'Our recommendations focus on improving competition in a payments system dominated by big players and where consumer choice has been limited.
'Consumers should have confidence that payment services are secure, affordable and competitive. Small businesses should not be disadvantaged by complexity or a lack of bargaining power.'
A full copy of the report is available on the committee's website.
