At the AFIA Conference in Sydney, Reserve Bank of Australia (RBA) Head of Payments Policy Department Ellis Connolly outlined how the bank will select priorities for its payments regulation review, reiterating plans to publish them by the end of 2026 and consult on regulatory options from mid-2027. The review, launched in June following legislation expanding the RBA’s regulatory coverage, has gathered stakeholder evidence on potential competition, efficiency and safety concerns. Prioritisation will depend on whether issues fall within the bank’s mandate, whether other regulators or industry are addressing them, and whether RBA standards or access regimes could improve outcomes. Connolly emphasised a preference for industry solutions where possible. Mobile wallets and agentic commerce featured prominently in the feedback. Nearly 50% of card payments now pass through mobile wallets, but stakeholders raised concerns about access to near-field communication technology, fees and commercial terms. For agentic commerce, concerns centred on verifying customer authorisation, keeping payments safe and allocating responsibility when things go wrong. Connolly encouraged industry frameworks to address competition and efficiency alongside security, preserving consumers’ choice of payment methods and merchants’ choice of which methods to accept. He highlighted the difficulty of regulating a rapidly evolving market through a process that can take 18 months to two years. Connolly also reviewed implementation of the previously finalised card payment reforms. Domestic interchange reductions took effect on 1 October, with international card adjustments scheduled for 1 April 2027. The RBA is monitoring whether lower interchange costs flow through to merchant service fees, particularly for small businesses. Requirements for large acquirers and card schemes to publish more fee data are intended to help merchants compare providers, while the surcharging changes aim to align advertised prices with what consumers pay by card.
Reserve Bank of Australia outlines payments review priorities process and concerns over mobile wallets and agentic commerce
At the AFIA Conference, Reserve Bank of Australia Head of Payments Policy Department Ellis Connolly reiterated that payments review priorities are due by the end of 2026, with consultation on regulatory options planned from mid-2027. Stakeholders raised concerns about mobile wallet access and fees, and authorisation, safety and liability in agentic commerce. He also highlighted monitoring of whether domestic interchange reductions taking effect on 1 October flow through to lower merchant fees.