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· Posted on
February 21, 2024

The Aussie Government is cracking down on payments and big tech is shaking

Aussies make around 55 million payments every single day, to the tune of $650 billion.

What's the key learning?

  • Treasurer Josh Frydenberg is planning to impose some regulations around our payments system, which'll be the first changes in more than 25 years
  • Australia's payments system has become a secret treasure chest for companies in financial services...that aren't banks
  • 'Non-bank' services (think: Apple Pay, BNPL and crypto) haven't been considered under the traditional payment regulation.

Background: Aussies make around 55 million payments every single day, to the tune of $650 billion.

What happened: But it ain't just funnelled through the regular banks...we've got buy now, pay later companies, crypto platforms and tech giants like Apple, PayPal and Alipay.

What else: Now, Treasurer Josh Frydenberg is planning to impose some regulations around our payments system, which'll be the first changes in more than 25 years. We're talkin:

  • Tougher licensing requirements on crypto exchanges
  • More powers to the government and the Reserve Bank of Australia
  • Holding tech giants accountable to the same rules as Aussie banks.

So what's the key learning?

💡Australia's payments system has become a secret treasure chest for companies in financial services...that aren't banks.

💡Every time you buy a loaf of bread from ya local bakery using Apple Pay...the bakery pays Apple an 'interchange' fee. Every time you use Afterpay...the retailer you buy from gives Afterpay a cut. Ya see?

💡Here's the kicker: these 'non-bank' services haven't been considered under the traditional payment regulation (which means they can get away with waaay more). So these new regulations are planning to level the playing field.

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