Australia is planning new strict laws that would secure the regulation of digital payment services which are controlled by tech giants.
The Australian politician and the federal treasurer and deputy leader of the Liberal Party Josh Frydenberg said he would carefully examine this matter and other recommendations from a government-commissioned report into whether the payments system had kept speed with advances in technology and changes in consumer demand required.
Apple Pay, Google Pay and China’s WeChat Pay are the services which are currently not designated as payment systems and eventually putting them outside the regulatory system.
He said that if they do nothing to control the current framework, it will be these companies alone that will determine the future of the payments system which is one of the important parts of the economic infrastructure.
A warning was given by the Bank for International Settlements (BIS) earlier this month which called for global financial watchdogs to urgently control and regulate the growing influence of big tech companies and the huge amounts of data managed by groups such as Google, Facebook, Amazon and Alibaba.
While the Australian report recommended the government be given the power to designate tech companies as payment providers, clarifying the regulatory status of digital wallets and industry together establish a plan for the wider transaction ecosystem so that a single and integrated licensing framework for payment systems be developed.
The data from Reserve Bank of Australia showed that payments through digital wallets had grown to 8% in 2019, up from 2% in 2016 and are all set to rise more. So a major configuration and regulations are required to maintain the safety and security.