Media Release Payments System Board Update: November 2016 Meeting

At its meeting today, the Payments System Board discussed some important trends in the payments system and strategic priorities for the Bank's payments policy work. The discussion of technology and innovation focused on the opportunities that could arise from the use of distributed ledger technology in the payments system and in financial market infrastructures. The Board reviewed the industry's progress on the New Payments Platform, which will enable a significant improvement in the payments services that Australian financial institutions will be able to offer end-users. The Board also noted the recent draft report by the Productivity Commission on Data Availability and Use and the potential benefits for competition and efficiency in the payments system of customers being able to make their banking and payments data available to other entities. The Board encourages the payments industry to work collectively to facilitate the secure sharing of such data.

The Board also discussed a number of other matters including:

• Some issues impacting on competition and efficiency that have emerged relating to the use of dual-network debit cards in mobile wallets. The Board authorised the staff to prepare a paper addressing these issues for consultation with stakeholders. This paper is expected to be published in the coming weeks.
• The Bank's assessment of LCH.Clearnet Ltd's SwapClear Service. The Bank undertakes formal assessments of clearing and settlement facilities licensed to operate in Australia. This assessment will be published once the Bank has fulfilled its obligation to make its findings available to overseas counterparts with a supervisory interest in LCH.Clearnet Ltd, and after the assessment has been provided formally to the Assistant Treasurer and the Australian Securities and Investments Commission.
• Recent changes to user agreements by PayPal to remove its ’no-surcharge‘ rules. The Board welcomed the changes made by PayPal that were communicated to users from 1 September and that became effective from 19 October.