PSB poised to regulate mobile wallets

Ian Rogers

The Payments System Board “will consider whether formal regulatory intervention is required” in connection with mobile wallets, the PSB said following its quarterly meeting yesterday.
 
“Members discussed competition, efficiency and security issues associated with mobile wallet services,” it said. 
 
“These included access to ‘near-field communication’ technology, the transparency of fees charged to issuers, and issuers’ ability to pass fees on to customers. 
 
“The Board will consider whether formal intervention is required to address these issues as part of a broader review of the Reserve Bank’s retail payments regulation”, which is expected to start once the Payment Systems (Regulation) Act 1998 reforms proposed by the government  are implemented.”
 
The reference to near-field communication (as well as to fees) will be interpreted as the prospect of the Payments System Board framing regulations that in effect play into the priorities of domestic banks, all long frustrated by Apple’s refusal to allow banks’ mobile wallets to operate in a manner optimised for their business model – and hostile to Apple’s.