Apple Pay and other mobile wallet platforms will soon face more regulation in Australia. As reported by Reuters, Australia is set to regulate Apple Pay under the same umbrella as credit cards and other payments.
The report explains that the new regulation will be introduced later this week. The legislation will come as an expansion of the existing legislation that enables the Reserve Bank of Australia to regulate and oversee payments in the country.
In a regulatory filing last month, Apple argued that this type of legislation will stifle innovation by increasing the “regulatory burden without a net public benefit.”
Apple believes the proposed expansion will increase regulatory burden without a net public benefit, give rise to regulatory error, and stifle the dynamic innovation that has characterized Australia’s payment system over recent years.
Apple Pay can only operate with an existing debit, credit or prepaid card issued by a third party. Apple does not have access to a cardholder’s account to determine whether funds are available. In offering Apple Pay, Apple does not collect any transaction information.
Under the new legislation, the Reserve Bank of Australia will be able to regulate digital wallet providers like Apple and Google like it currently does credit cards. There’s presently no explicit roadmap on what, if any, changes the Reserve Bank of Australia might impose on Apple.
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