Digital Payments & Fintech - Australia

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.