The Payments System Board of the Reserve Bank of Australia met on November 26, 2025, to discuss several regulatory and operational issues affecting the country’s payments infrastructure.
The Board reviewed progress in implementing powers designed to prevent or resolve crises at Australian clearing and settlement facilities. Stakeholder feedback on draft guidance for the RBA’s crisis resolution powers was considered, with publication of final guidance expected in December 2025.
On merchant card payment costs and surcharging, members examined responses to a consultation paper released in July. The discussion focused on potential changes to interchange caps and whether commercial credit cards should have higher caps than consumer cards. Feedback indicated that some proposed reductions might not benefit merchants immediately without further regulation. The Board is considering measures to promote competition and transparency among payment acquirers. It plans to publish conclusions and an implementation timeline by March 2026, stating that “it was not in the public interest to further delay this review given the importance of the reforms being considered.”
Recent amendments to the Payment Systems (Regulation) Act 1998 were welcomed by members. A public consultation will be held in mid-2026 regarding regulatory priorities, taking into account these amendments as well as technological developments and broader industry trends. This consultation will address efficiency, competitiveness, and safety concerns related to mobile wallets, three-party schemes, buy-now-pay-later providers, and e-commerce platforms.
The Board also assessed the New Payments Platform (NPP) under its oversight regime for prominent payment systems. Ensuring effective governance and risk management remains a priority as more account-to-account payments are expected to migrate onto the NPP over time.
Updates were provided on efforts to strengthen Australia’s real-time gross settlement system following recommendations from a March 2024 assessment of the Reserve Bank Information and Transfer System (RITS). Initiatives include improvements in operational reliability, change management practices, and cyber resilience. The next full assessment is scheduled for June 2026.
Industry progress toward transitioning card payments encryption standards to Advanced Encryption Standard (AES) was discussed. The Board expressed continued support for these efforts: “Members reiterated their strong support for industry efforts to ensure encryption standards continue to meet the high safety standards for card payments expected by the Australian public.” Industry migration is expected by December 2030; consultations may occur regarding use of standard-setting powers under existing regulations.
An annual review found high compliance levels among card issuers, acquirers, and designated schemes with RBA regulations covering interchange fees, surcharging standards, and access regimes during 2024/25.
Efforts toward improving cross-border payments were also addressed as part of Australia’s commitment under international agreements such as the G20 Roadmap. Progress includes adoption of ISO 20022 messaging standards within domestic high-value clearing systems by late 2027 and expanded use of NPP’s International Payments Service for round-the-clock processing of incoming cross-border transactions. The RBA continues participation in international projects exploring automation in cross-border compliance processes; it will examine options for enhancing wholesale cross-border payments through upgrades to RITS and research into digital money innovations during 2026.
