A New Era in Payments: The Rise of Contactless
In the ever-evolving world of financial transactions, contactless payments have emerged as the dominant form of in-store payments. According to Richard Wormald, President of Asia Pacific for Mastercard, an impressive 98% of in-store payments are now contactless. This staggering statistic underscores the rapid shift towards more convenient and secure payment methods in today’s fast-paced retail environment.
Comparing Scheme Fees: Mastercard, Eftpos, and Apple Pay
Wormald also provided insight into the fee structure of Mastercard’s payment scheme. He revealed that the company has a total of 122 scheme fees, significantly less than the over 400 fees reported earlier by Westpac. This compares with Eftpos, which operates with a minimal fee structure, having only two scheme fees.
On the other hand, Apple has maintained a consistent fee model for its Apple Pay platform over the past decade. This standardised approach has not seen any fee increases, demonstrating a commitment to stability and predictability for its banking partners.
Apple Pay’s NFC Chip: A Hotbed of Innovation and Security Concerns
Apple Pay’s Near Field Communication (NFC) chip has garnered considerable attention from developers worldwide. According to Sean Dillon, Senior Director of Global Competition Law at Apple, there are over 100 developers in Australia alone who are currently working on applications to access this chip. However, Dillon notes that using the NFC chip outside of Apple Pay could potentially compromise the security of the payment platform.
Looking Ahead: Reserve Bank of Australia’s Future Consultation
The Reserve Bank of Australia (RBA) is also preparing to enter the discussion on the future of payment platforms. Ellis Connolly, Head of Payments Policy at the RBA, confirmed that a consultation will take place in mid-2026 to discuss the prioritisation of issues under the amended Payment System (Regulation) Act. This consultation will include consideration of three-party card schemes, mobile wallets, ‘buy-now, pay-later’ providers, and e-commerce platforms.
The evolution of payment methods is a testament to the ongoing innovation in the financial sector. As technology continues to advance, it’s clear that contactless payments and mobile wallets will play an increasingly significant role in shaping the future of commerce. This transition not only offers consumers more convenience but also poses new challenges and opportunities for developers, retailers, and regulators alike.
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