Digital Payments & Fintech · Australia
Fintech & digital payments rules in Australia (2026)
Australia shaded by its digital payments & fintech status
Australia operates an established, multi-regulator licensing regime for payments and fintech: payment-service and stored-value providers generally require an Australian Financial Services (AFS) licence from ASIC, with APRA prudentially supervising larger stored-value facilities and the RBA overseeing the payments system. The framework is undergoing its largest overhaul in two decades — the Payments System Modernisation Act 2025 (passed September 2025) widened the regulatory perimeter to capture digital wallets, BNPL and crypto payment facilitators, and a new activity-based PSP licensing framework is in consultation (expected to commence around 2027). BNPL became formally licensed credit from 10 June 2025, open banking runs under the Consumer Data Right, and instant payments use the New Payments Platform/PayTo.
Key points
Providers of non-cash payment facilities and most payment services must hold an Australian Financial Services licence from ASIC under the Corporations Act 2001, unless exempt or acting as an authorised representative.
Stored-value facilities (the closest analogue to e-money) are regulated by ASIC for conduct and by APRA prudentially where obligations are large and payable on demand; the Council of Financial Regulators recommended a tiered SVF framework that informs the current modernisation. The RBA retains payments-system oversight under the Payment Systems (Regulation) Act 1998.
The Treasury Laws Amendment (Payments System Modernisation) Act 2025 (passed Parliament 4 September 2025) broadened the definitions of 'payment system' and 'participant' to capture digital wallets, BNPL and crypto payment facilitators; a separate activity-based PSP licensing regime under the AFSL framework is in consultation, expected to commence around 2027.
Following the Treasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) Act 2024, BNPL contracts are regulated as credit under the National Credit Code; from 10 June 2025 providers must hold an Australian Credit Licence, be AFCA members, and follow ASIC's Regulatory Guide 281.
Open banking operates under the government's Consumer Data Right, which is live in the banking sector (and energy) letting consumers share data with accredited recipients, with rollout extending to non-bank lenders from 2026.
Real-time payments run on the industry-owned New Payments Platform; its mandate-based service PayTo enables instant, 24/7 account-to-account one-off and recurring payments as a modern alternative to direct debit.
Timeline - major decisions & events
Treasury released draft legislation creating a core PSP licensing regime and a graduated framework for stored-value facilities (including stablecoin issuers and digital wallets), replacing the old 'non-cash payment facility' concept; aimed for a single package to Parliament in 2026.
Treasury (Assistant Treasurer) ↗The Treasury Laws Amendment (Payments System Modernisation) Act 2025 received Royal Assent, broadening the Payment Systems (Regulation) Act 1998 to capture BNPL, digital wallets, crypto-asset payment facilitators and cash services, and adding ministerial designation powers and civil penalties.
Parliament of Australia ↗From this date BNPL providers must hold an Australian Credit Licence and comply with the National Credit Code as 'low-cost credit contracts', subjecting Afterpay, Zip and peers to responsible-lending and AFCA-membership obligations.
ASIC ↗ASIC published RG 281 explaining how the new BNPL credit rules apply, including the modified responsible-lending framework for low-cost credit contracts, giving providers operational guidance ahead of the June 2025 commencement.
Gilbert + Tobin (on ASIC RG 281) ↗Parliament passed the Scams Prevention Framework Bill amending the Competition and Consumer Act, imposing prevent/detect/disrupt/report duties on banks, telcos and digital platforms with penalties up to A$50m and ACCC as lead regulator — a world-first cross-sector anti-scam regime affecting payments.
Treasury ↗The Treasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) Act 2024 extended the National Credit Code to BNPL contracts, establishing the legal basis for licensing BNPL as regulated credit.
Treasury ↗The government-commissioned review (led by Scott Farrell) made 15 recommendations, including a single PSP licensing framework and expanding the RBA's power to designate emerging payment systems — the blueprint driving the current modernisation reforms.
Treasury ↗Live consumer data sharing began in the banking sector, letting customers authorise accredited third parties to access their banking data — enabling data-driven fintech services and account-based payment innovation.
ACCC ↗The Treasury Laws Amendment (Consumer Data Right) Act 2019 inserted Part IVD into the Competition and Consumer Act, creating the legal foundation for open banking and consumer-directed data portability administered by the ACCC and OAIC.
OAIC ↗The industry-built NPP went live, providing 24/7 near-real-time account-to-account payments settled across the RBA's Fast Settlement Service — the core fast-payments rail underpinning modern Australian fintech and digital payments.
Reserve Bank of Australia ↗Under the Payment Systems (Regulation) Act 1998, holders of stored value were required to be APRA-supervised ADIs or hold an RBA authority/exemption — establishing the prudential regulation of stored-value payment products (e.g. PayPal later licensed as a PPF).
RBA / APRA ↗The Act gave the RBA's Payments System Board powers to designate and regulate payment systems and purchased payment facilities — the 25-year-old foundation of payments regulation that the 2025 modernisation reforms overhaul.
Reserve Bank of Australia ↗Australia - other topics
Last verified 5/23/2026 · Orientation, not legal advice - verify against the primary sources linked above. Explore the full world map →