Digital wallets such as Apple Pay, Google Pay and WeChat Pay are currently not designated as payment system in Australia. Credit: Mika Baumeister on Unsplash.

The Australian government is reportedly planning to introduce new regulations for digital payment services by major tech companies such as Apple and Google.

Digital wallets such as Apple Pay, Google Pay and WeChat Pay are currently not designated in the country as payment systems.

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Australian federal treasurer Frydenberg said that he would ‘carefully consider’ recommendations from a government-commissioned report to analyse if the payments system has been in line with advances in technology and changes in consumer demand, Reuters reported.

The report suggested that the government be given the authority to designate tech companies as payment providers and to define the regulatory status of digital wallets.

The report also recommends that the government and industry work together to form a strategic plan for the wider payments ecosystem.

It also stated that a single, integrated licensing framework for payment systems be developed as part of the collaboration.

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Frydenberg has been quoted as saying in an opinion piece published in the Australian Financial Review newspaper: “Ultimately, if we do nothing to reform the current framework, it will be Silicon Valley alone that determines the future of our payments system, a critical piece of our economic infrastructure.”

Currently, the Reserve Bank of Australia holds the power to designate payment services provider.

According to the bank, payments through digital wallets had increased to 8% of in-person card transactions in 2019, up from 2% three years ago.

The Commonwealth Bank of Australia urged regulators to address ‘competition issues’ after it observed that digital wallet transactions more than doubled to A$2.1bn this year through March.

Meanwhile, recently, Citi Australia divulged plans to foray into the buy now pay later space with the launch of its new offering, dubbed Spot. Buy Now Pay Later.