Highlights

  • Nearly 50% of card payments in Australia are now made through mobile wallets, according to the RBA.
  • Stakeholders have raised concerns about access to near-field communication technology.
  • Mobile wallet fees and commercial arrangements are attracting regulatory attention.
  • The RBA is assessing whether competition and efficiency concerns require further action.

Australia's growing adoption of mobile wallets is attracting greater regulatory scrutiny as the Reserve Bank of Australia examines competition, technology access and payment costs. Speaking at the AFIA Conference on 20 October 2026, Ellis Connolly, Head of Payments Policy Department, discussed how consumers increasingly rely on smartphones for payments while industry participants raise concerns about the commercial arrangements governing mobile wallet services.

Mobile Wallet Adoption Continues to Expand

Digital wallets have become an important part of Australia's retail payment ecosystem.

Connolly said that nearly 50% of card payments are now processed through mobile wallets, reflecting their growing popularity among consumers.

Smartphone-based transactions offer convenience by allowing customers to make contactless payments without carrying physical payment cards.

They also incorporate security features such as tokenisation and biometric authentication.

These advantages have contributed to wider consumer adoption, making mobile wallet infrastructure increasingly important for payment service providers.

NFC Access Raises Competition Questions

One area receiving attention is access to near-field communication, or NFC, technology.

NFC enables smartphones and other compatible devices to communicate with payment terminals during contactless transactions.

Stakeholders have raised concerns about whether access arrangements provide sufficient opportunities for different payment providers to compete.

Restrictions or commercially disadvantageous access conditions may affect the ability of financial institutions and payment technology businesses to offer competing services.

The RBA is considering these concerns as part of its broader review of payment system regulation.

Payment Fees and Commercial Arrangements Under Review

Mobile wallet fees represent another important issue.

Payment providers and merchants may face different costs depending on the commercial terms associated with mobile wallet transactions.

Connolly indicated that stakeholder concerns extend to the efficiency and competitiveness of these arrangements.

The central bank is gathering evidence to determine whether the issues warrant regulatory attention.

Importantly, the RBA has not announced a specific new mobile wallet regulation through this speech.

Regulatory Decisions Will Follow Further Assessment

The RBA intends to identify its payment regulation priorities by the end of 2026.

Potential regulatory options are expected to undergo consultation during 2027.

Connolly emphasised that industry-led solutions remain preferable where they can adequately address public interest concerns.

The outcome could influence how financial institutions, mobile wallet providers and merchants approach digital payment services.