Payments News

Australia could intervene to unwind Visa, Mastercard preferential payment structure

Feb 10, 2020
SYDNEY, Feb 5 (Reuters) - Australian regulators would consider intervening to stop banks from automatically directing “tap-and-go” card payments through the world’s largest payment processors Visa and Mastercard Inc., the Reserve Bank of Australia (RBA) said Wednesday.

Banks needed to stop automatically directing debit card payments through the two global networks, and instead give retailers the cheaper option to use EFTPOS, a local payment network, Governor Philip Lowe told reporters after a speech in Canberra.

Global card schemes MasterCard and Visa, alongside the major four banks, dominate card payments systems in Australia. EFTPOS is owned by local financial institutions and retailers.

By Paulina Duran

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