The central bank is updating Australia’s payments rules after decades of relative inaction, moving closer to standards already common across other advanced economies. This shift forces banks, card schemes and newer fintech players to rethink how they earn revenue from every tap or swipe and it comes at a time when regulators are taking a more assertive stance on competition in the payments sector.
At the centre of the tension is Mastercard, which faces a looming Federal Court case brought by the competition regulator that focuses on alleged abuse of market dominance. The regulator’s legal team is preparing to argue that Mastercard’s approach to certain card transactions stifles competition while industry insiders speculate that the company may try to reach a settlement rather than risk a full court judgment. On paper both sides look ready, with the hearing scheduled to begin on April 13 and expected to draw global attention because similar business models operate in many countries.
The outcome looks likely to shape how payment networks, banks and merchants share the cost of card transactions in Australia and could influence regulatory thinking in other markets watching closely. A negotiated resolution might deliver faster certainty for the industry but could also be seen as a lost chance to properly test the competition law changes designed to tackle powerful incumbents. For now the sector seems to be bracing for a new era in which surcharges shrink, scrutiny grows and the balance of power in card payments is quietly redefined.
