In October 2018, we responded to the Council of Financial Regulators’ (CFR) Issues Paper, Review of Retail Payments Regulation: Stored-value Facilities.
Key objectives for the review included identifying opportunities to simplify the regulatory framework for stored value facilities (SVFs) – currently known as purchased payment facilities or PPFs – and ensure that regulation does not pose an undue obstacle to innovation and competition.
This was a recommendation of both the 2014 Financial Systems Inquiry and the 2018 Productivity Commission inquiry, Competition in the Australian Financial System.
Our submission noted that, based on the Australian consumer trend towards uptake of digital payments and fintech solutions, SVFs could become ubiquitous and have a variety of purposes. AusPayNet suggested that the CFR should explore a graduated regulatory framework for SVFs that offers temporary relaxation of requirements for new entrants within a restricted environment, for testing purposes.
Based on the consultation, the CFR will develop recommendations in early 2019.