At its meeting today, the Payments System Board discussed a number of issues, including:
- The future of cash distribution arrangements. The Board discussed the ongoing challenges in the cash distribution system. Access to cash remains vital for many Australians, particularly in regional and remote communities. Members acknowledged the importance of the long-term sustainability of the cash distribution system and expressed support for the proposed regulatory framework for providers of cash distribution services. The framework would include crisis powers for the public sector to assist in managing risks to the continuity of cash distribution services across Australia.
- Review of Merchant Card Payment Costs and Surcharging. The Board discussed the evidence and public interest case for amending the regulation of card systems. In particular, the Board discussed the relative merits of options on card payment surcharging, interchange fee regulation and transparency of card payment fees. Members agreed to publish, by the end of March, a Conclusions Paper and an implementation timeline for any regulatory action.
- The system-wide resilience of the Australian payments system. The Board discussed the findings from RBA analysis of systemic risks arising from limited interoperability, third-party and concentration risks, and resilience arrangements for merchant card acquiring. Members expressed their support for industry efforts to strengthen resilience and contingency arrangements so that the payments system meets the high reliability standards expected by Australians. The RBA will continue to contribute to these efforts by sharing its analysis with industry and providing guidance.
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Developments in the account-to-account payments system. The Board discussed industry progress against the recommendations from the 2025 Risk Assessment of the intended decommissioning of the Bulk Electronic Clearing System (BECS). The Board noted that the removal of the 2030 target end-date has reduced the risk of a disorderly transition in the short to medium term. Members acknowledged the initiatives taken by industry to support the modernisation of the A2A payments system, including the establishment of the A2A Payments Roundtable and the work currently underway to define a shared vision and objectives for A2A payments across industry and the public sector.
Despite these positive moves, the Board expressed concern about insufficient consensus within industry, particularly on how best to process bulk payments in the future. This lack of consensus is impeding the effective decision-making needed to establish a path forward for A2A payments that is consistent with the public interest, including the enhancement of resilience. It also lowers the likelihood of successfully delivering the vision. Members agreed that if industry participants are unable to make coordinated progress on modernising A2A payments, the RBA would take further action to achieve outcomes in the public interest.
- Project Acacia findings and a roadmap for future work. The Board discussed the findings from Project Acacia, noting the potential benefits to the functioning of the financial system that could be unlocked by the growth of tokenised asset markets. They also acknowledged the barriers to development of tokenised asset markets in Australia, including those that were raised by industry participants during the project. Members expressed their support for an ongoing program of work, supported by public-private collaboration, that will promote responsible innovation in Australia's wholesale payments and financial market infrastructure. The Project Acacia final report will be published in late April.
