Australia: Preliminary Conclusions of the Payments System Review

Philip Lowe, Assistant Governor of the Reserve Bank of Australia, spoke earlier this month at a Visa forum on the subject of "The Preliminary Conclusions of the Payments System Review".

He says: "If there is a central message to my remarks ... it is that, while significant progress has been made in improving the competitive landscape in the Australian payments system, further progress is needed. Ideally, this progress would be made by industry participants. Reflecting this, the Board’s preliminary conclusions lay out some carrots and sticks that it hopes will promote industry-based reform. In the event that industry is able to respond and deliver a more competitive system, then the most contentious part of the reforms – the regulation of interchange fees – can be rolled back. On the other hand, if industry is either unable or unwilling to take the necessary steps, then the regulation of interchange fees is likely to continue, and these fees, particularly in the credit card system, are likely to be reduced further."