SYDNEY, Monday 8 February 2016 - In its submission to the Reserve Bank of Australia’s Card Payments Review, in response to draft reforms, Visa has continued to emphasise the need for forward-looking regulation to future-proof payments in a rapidly changing environment.
Stephen Karpin, Group Country Manager for Visa in Australia, New Zealand and South Pacific said, “Australians are among the world’s earliest adopters of new ways to pay. In order for Australia to continue leading the world in payments innovation, the regulatory framework must be balanced to enable flexibility and agility in a changing sector.”
In its submission, Visa highlights the need for:
“Card-based electronic payments are not as widely adopted in the commercial sector as they are among consumers and the profit drivers for issuers of these products differ significantly from consumer cards,” said Karpin. “Applying the same consumer-focused regulation to commercial payments will reduce product availability and stifle innovation that would benefit Australian businesses, particularly for those in the SME segment, where card-based payments enhance efficiencies and reduce costs,” added Karpin.
In its submission, Visa has also provided views on the proposed timing change to the interchange reset cycle, recommending the RBA, at a minimum, moves to a 12 month moving average.
Visa has actively participated throughout the RBA Review process and will continue to consult as the proposed reforms are finalised.
1 Deloitte Access Economics Report is the attachment to Visa’s second submission to the Financial System Inquiry. Available at http://fsi.gov.au/files/2014/08/VISA_Attachment_A.pdf
Visa Inc. (NYSE: V) is a global payments technology company that connects consumers, businesses, financial institutions, and governments in more than 200 countries and territories to fast, secure and reliable electronic payments. We operate one of the world's most advanced processing networks — VisaNet — that is capable of handling more than 65,000 transaction messages a second, with fraud protection for consumers and assured payment for merchants. Visa is not a bank and does not issue cards, extend credit or set rates and fees for consumers. Visa's innovations, however, enable its financial institution customers to offer consumers more choices: pay now with debit, pay ahead of time with prepaid or pay later with credit products. For more information visit www.visa.com.au and @VisaNewsAU.
Media contact:Teneille RennickVisa 02 9253 8841 or +61 449 892 915 email@example.com