Payments Monitor Newsletter

November 2020

In this special feature, we highlight our 2020 Annual Review published on 29 October 2020. The next edition of our Payments Monitor will be available by mid-December.


Meeting the Challenge by Andy White

In its latest update the RBA’s Payments System Board noted that “payment system operators and retail payment service providers have continued to cope well with the operational challenges posed by the [COVID-19] pandemic”.

The RBA Governor has also observed that the payments system’s resilience has played an important role in the continued functioning of the economy and commented on the dynamism that can be observed in payments currently.

For AusPayNet, that dynamism was exemplified in the industry rallying to amend the contactless PIN limit from $100 to $200 at the beginning of the pandemic, to limit shoppers’ physical contact with terminals.

Our industry’s dynamism was also evident in the way payments stakeholders came together to create our Card-not-Present (CNP) Fraud Mitigation Framework. Its impact is evident in our recent fraud statistics, published in August this year: in 2019, card fraud fell by 19.5% to $464 million, the biggest decline ever. Moreover, CNP fraud dropped by 18% to $ 403 million.

We know from experience though that as one area of payments fraud becomes harder, criminal groups turn their attention to other areas, as is now evident in the rise in scams. Building on significant effort already underway, we are focused on improving protection of vulnerable customers.

This work on mitigating scams is at the heart of AusPayNet’s purpose: confidence in payments. Our three core functions support that purpose: managing the payment streams, governance, and an increasing focus on policy and advocacy.

Read more in the ‘CEO and Chair Message’ (Annual Review page 6).


Online event series

Due to COVID-19, in place of our annual summit, we are hosting a series of events culminating in a much-anticipated session with the Governor of the Reserve Bank of Australia, Philip Lowe, on 7 December 2020.

The first session ‘Digital ID – What’s Working in Canada’ was held on 30 October 2010. Don’t miss the next four sessions in this series as we explore topics that are front of mind for the industry.

Details are available here. Read more (Annual Review page 29).


Responding to COVID-19

In September 2020, the industry extended the $200 contactless card limit to 17 December 2020 in line with the Government’s COVID-19 Biosecurity Emergency Declaration. The temporary $200 limit, up from $100, has been in place across certain cards and at certain merchants since 8 April 2020 to help limit the need for physical contact with terminals. We continue to review and make decisions, pending Government advice.

Read more (Annual Review page 15).


Migration to ISO 20022 Messaging

Industry work to migrate the High Value Clearing System to ISO 20022 messaging is progressing on track. The first phase - Planning and Design – involves developing message specifications that are harmonised with existing SWIFT usage guidelines. This phase, which is due to end in March 2021, will be followed by three phases before full migration is achieved by November 2024.

Read more (Annual Review page 16).


Future State of Payments Action Plan

Following our industry consultation in late November 2019 on the future state of payment systems, in August 2020 we published the Future State of Payments Action Plan. The Action Plan outlines the industry’s response to the evolution of payments. As the uptake of convenient, digital payment methods accelerates, the focus is on modernisation and ensuring payments system efficiency through the rationalisation of older systems like APCS for cheques and BECS for direct entry. The Plan outlines areas for future actions including developing a roadmap to manage the transition away from BECS and a strong focus on managing the consumer-led decline in cheque use.

Read the Action Plan here.


TrustID - Governance Consultation and more

AusPayNet’s public consultation seeking views on the most appropriate governance structure for the TrustID Framework closed on 9 October 2020. Input was received through formal submissions, bi-lateral discussions where requested, and round tables were conducted with interested parties. The insights gathered through this consultative approach will inform development of a roadmap for future TrustID activities. Beyond the governance consultation, a set of principles have been developed to shape the establishment of a TrustID accreditation process, and strong progress has been made on the creation of a Trust Mark.

Read more (Annual Review page 22).


Interim Report of the Senate Select Committee on FinTech and RegTech

The interim report of the Senate Select Committee on Financial Technology and Regulatory Technology was released on 2 September 2020. Committee Chair, Senator Andrew Bragg, described the interim report as “quick wins” with longer-term structural issues left to the final report, due in April 2021. The Report contains recommendations relating to several policy areas, including general recommendations for sectoral regulation and specific recommendations for the CDR, digital identity and the New Payments Platform (NPP).

Read our blog here.

Read more on our Policy and Advocacy activities (Annual Review page 26).

Our 2020 Review ‘Meeting the Challenge’ is available here.


In case you missed it - Podcast with our CEO Andy White

Our CEO Andy White talks to Christian Clark from 7R Talent on what’s happening in payments for the Payments Australia podcast series.