The entry (and spectacular growth) of new payment services and technology providers has been nothing short of disruptive, driven by an era of consumer centricity. A future fit regulatory framework is now needed to drive further innovation and competition, while continuing to protect the interest of consumers and businesses.
A review of the regulatory architecture for the Australian payments industry has been long awaited. We in Australia (like other advanced economies) find ourselves in 2021 with a highly complex regulatory environment in the financial services industry. One that has been iteratively ‘added to’ over time, and which served (very well) an industry that has now significantly changed.
Since its release on 29 August 2021, Treasury’s Report on the Payments System Review (the ‘Report’) and its 15 recommendations have been well received. The review lead by Scott Farrell comes at a critical time for Australia. It follows significant growth and the associated increased complexity in the industry with a marked shift from payments ‘system’ to ‘ecosystem’ given the emergence of new technology, new providers and new business models.