Australians are being encouraged to voice their opinions on a proposal to eliminate a conventional payment method by the end of the decade.
The Albanese government is considering eliminating the use of checks by 2030 as part of its efforts to modernise the country’s payment system. Prior to finalising the decision, Australians are being invited to provide their input on the upcoming changes.
Treasurer Jim Chalmers and Assistant Treasurer Stephen Jones have recently released two consultation papers, inviting public input on the future of Australia’s payments system. In a recent development, the government has revealed its plans to phase out the use of checks by 2028, with proposed legislation to completely eliminate them by 2030.
Chalmers emphasised the importance of Australia’s payments system being effective and beneficial for both consumers and small businesses. The speaker stated that internet or mobile banking could process most retail checks, as well as all institutional and commercial checks.
According to Chalmers, the practice of leaving checks in the system is becoming more expensive and less effective for processing a smaller portion of payments. The public has received a consultation paper on checks and a paper proposing an updated regulatory framework for payment service providers.
The paper suggests that Australian financial services laws should regulate payment service providers based on the specific activities they engage in. In their statement on Friday, Chalmers and Jones emphasised that Labour was making the two papers public to further their efforts in improving Australia’s payments system to better serve the modern economy.
“We are making meaningful changes that will help make our payments system more seamless, safer, stronger, and suitable for the times,” the pair said.
“Whether it’s checks, payment cards, digital wallets, or cash, a competitive and efficient payments system is essential to supporting the businesses of everyday Australians.”
The use of digital wallets for card transactions significantly increased in the June 2023 quarter. In the June 2023 quarter, digital wallets conducted approximately 35 percent of all transactions, a significant increase from the 10 percent in early 2020.
A substantial gap in mobile payment usage exists between different age groups in Australia, as revealed by the Reserve Bank. The data shows that approximately 65% of individuals aged 18 to 29 utilise mobile payments, while only 9% of those over the age of 65 engage in this form of transaction.