At its meeting today, the Payments System Board discussed a number of issues, including: The Bank s Review of Retail Payments Regulation. The Board reviewed responses.
Mastercard, banks at loggerheads on payments merger
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Tension between banks and the US payment giants that issue their credit and debit cards has escalated after Mastercard described banks’ arguments that the proposed merger of three domestic payment systems was necessary as “hypothetical at best”.
In preliminary views on the merger of the New Payments Platform, BPay and eftpos on June 4, the Australian Competition and Consumer Commission questioned whether the benefits of a deal would outweigh the costs and called for more detail from the banks.
Mastercard told the ACCC the banks could lawfully collaborate on payments innovation through joint ventures or other structures authorised by the ACCC.
Banks hit back at ACCC concerns on payments merger afr.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from afr.com Daily Mail and Mail on Sunday newspapers.
By Justin Hendry on Dec 15, 2020 11:30AM
But will retain operational autonomy.
Australia’s three payments infrastructure providers have agreed to merge as a single entity in a bid to reduce costs and better compete with the growing number of overseas payment platforms.
eftpos, BPAY and NPP Australia (NPPA) announced their intention to amalgamate, pending further consultation and approval by the Australian Competition and Consumer Commission.
It follows months of consultation that began after the release of an issues paper that set the scene for the Reserve Bank of Australia’s root-and-branch review of the payments system.
“In Australia, international card schemes and multinational technology providers are dominating the payments sector,” the trio said in a statement.
Eftpos, BPay, NPP agree to merge, to help banks take on card giants
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Three domestic payment systems – Eftpos, BPay and NPP Australia – have agreed to merge in a deal that would create a larger, coordinated player better able to compete against US card giants Visa and Mastercard, which have been stealing market share in debit payments.
The merger, which requires Australian Competition and Consumer Commission approval, will also allow banks to coordinate investment to ensure domestic payment infrastructure remains innovative and transaction data is not lost to offshore technology companies.
Australian Payments Council chairman Robert Milliner: The model proposed will enable us to adapt faster to the changing trends of the digital economy.