Apple and Google digital wallets will soon fall under the same payment rules as credit cards and EFTPOS.

In the June quarter, digital wallets accounted for about 35 per cent of card transactions, compared to just 10 per cent in early 2020. 

The Reserve Bank of Australia reports a significant surge in mobile payment usage, with nearly two-thirds of those aged 18 to 29 embracing digital payment systems on their phones. 

Even among individuals over 65, the use of digital wallets has tripled since 2019.

Treasurer Jim Chalmers contends that emerging payment systems, such as digital wallets, should be subject to the same regulations as credit cards, EFTPOS, and other payment methods. 

These regulations aim to enhance transparency regarding costs incurred by consumers and businesses without substantially altering how consumers use digital payment services.

The treasurer's draft legislation to amend the Payment Systems (Regulation) Act is designed to safeguard consumers, stimulate competition, and encourage innovation as digital payments become the norm. 

However, Apple expressed concerns during the consultation process, arguing that such regulation could impede technological advancement. 

Apple said that digital wallets differ from credit cards and should not be bound by identical rules.

In contrast, some major banks, including ANZ, expressed support for the reforms, noting that they would bring clarity and consistency to the regulatory oversight of the payments system.

The proposed changes include updates to the definitions of “payment” and “payment systems” to encompass new digital payment methods. 

This expansion would allow the Reserve Bank of Australia to regulate digital wallet providers, similar to its oversight of credit cards.

The draft legislation also introduces a ministerial power to subject certain payment services to additional regulatory oversight if they pose a risk of national significance, although the specific criteria for such significance remain undefined in the draft.