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Fintech & payments regulation in Australia (2026)

Fintech and digital payments in Australia: licensing regime.

Australia has an in-force but fragmented, product-based licensing regime: payment and stored-value products are captured under the AFSL framework administered by ASIC, with APRA prudential oversight for major stored-value facilities and ADIs. Open banking is live via the Consumer Data Right, real-time payments run on the New Payments Platform/PayTo, and BNPL was brought under full credit licensing on 10 June 2025. Treasury's Tranche 1 payments modernisation exposure draft (March 2026) will introduce a cohesive activity-based PSP licensing regime, but is not yet enacted.

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Legal framework

Australian Financial Services Licence (AFSL) under the Corporations Act 2001 for non-cash payment facilities and stored-value facilities (with APRA prudential oversight of large SVFs); National Consumer Credit Protection Act 2009 for BNPL/credit; Consumer Data Right (CDR) for open banking; Reserve Bank of Australia (RBA) as payments-system regulator under the Payment Systems (Regulation) Act 1998. A modernised, activity-based payments licensing regime (Payment Systems Modernisation Bill, Tranche 1) was released in exposure draft on 12 March 2026.

Key points: digital payments & fintech in Australia

  1. Current licensing perimeter (ASIC & APRA)

    Payment products classed as 'non-cash payment facilities' and stored-value facilities require an AFSL from ASIC; APRA sets prudential standards for major stored-value facility providers (Purchased Payment Facilities/SVFs) and for authorised deposit-taking institutions offering payment services.

    afslhouse.com.au treasury.gov.au

  2. Payments modernisation reforms (Tranche 1, March 2026)

    On 12 March 2026 Treasury released exposure draft Treasury Laws Amendment Bill 2026: Payment Systems Modernisation, introducing an activity-based licensing regime for PSPs (digital wallets, merchant acquirers, payment initiation, payment facilitation) with SVF prudential regulation triggered above AUD 200 million in aggregate stored value. Consultation closed 9 April 2026; legislation is not yet enacted.

    treasury.gov.au ministers.treasury.gov.au

  3. BNPL regulated as credit (from 10 June 2025)

    The Treasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) Act 2024 extended the National Credit Act and National Credit Code to BNPL. From 10 June 2025 BNPL providers must hold an Australian Credit Licence, join AFCA, and comply with (modified) responsible lending obligations; ASIC's RG 281 sets the compliance detail for 'low cost credit contracts'.

    asic.gov.au afca.org.au

  4. Open banking via Consumer Data Right

    The CDR, led by ACCC with OAIC and the Data Standards Body, is live for banking and energy and expanded to non-bank lenders on 13 July 2026 (product data), with consumer data sharing phased in from 9 November 2026. Over 1.3 million consumers are actively using CDR.

    cdr.gov.au accc.gov.au

  5. Instant payments rail — NPP and PayTo

    The New Payments Platform, launched February 2018 and overseen by the RBA, provides 24/7 near real-time payments; by March 2026 it processes over 155 million payments/month across 100+ institutions. PayTo (account-to-account mandated payments) is replacing direct debits, and legacy BECS is scheduled to be decommissioned by June 2030.

    rba.gov.au auspayplus.com.au

  6. System-level regulation (RBA)

    The RBA regulates payment systems and designated participants under the Payment Systems (Regulation) Act 1998, complemented by ASIC and APRA for licensed entities. Government amendments in 2024–2025 broadened the RBA's designation powers to cover digital wallets and modern payment intermediaries.

    gtlaw.com.au rba.gov.au

Timeline of decisions

  1. Law · official
    Exposure draft of new payment service provider licensing Bill released

    Treasury released draft legislation creating a core PSP licensing regime and a graduated framework for stored-value facilities (including stablecoin issuers and digital wallets), replacing the old 'non-cash payment facility' concept; aimed for a single package to Parliament in 2026.

    Treasury (Assistant Treasurer)

  2. Law · official
    Payments System Modernisation Act expands RBA's regulatory perimeter

    The Treasury Laws Amendment (Payments System Modernisation) Act 2025 received Royal Assent, broadening the Payment Systems (Regulation) Act 1998 to capture BNPL, digital wallets, crypto-asset payment facilitators and cash services, and adding ministerial designation powers and civil penalties.

    Parliament of Australia

  3. Law · official
    Buy now pay later providers brought under credit licensing

    From this date BNPL providers must hold an Australian Credit Licence and comply with the National Credit Code as 'low-cost credit contracts', subjecting Afterpay, Zip and peers to responsible-lending and AFCA-membership obligations.

    ASIC

  4. Guidance
    ASIC issues Regulatory Guide 281 on low-cost credit (BNPL)

    ASIC published RG 281 explaining how the new BNPL credit rules apply, including the modified responsible-lending framework for low-cost credit contracts, giving providers operational guidance ahead of the June 2025 commencement.

    Gilbert + Tobin (on ASIC RG 281)

  5. Law · official
    Scams Prevention Framework legislation passes Parliament

    Parliament passed the Scams Prevention Framework Bill amending the Competition and Consumer Act, imposing prevent/detect/disrupt/report duties on banks, telcos and digital platforms with penalties up to A$50m and ACCC as lead regulator, a world-first cross-sector anti-scam regime affecting payments.

    Treasury

  6. Law · official
    Responsible Buy Now Pay Later Act receives Royal Assent

    The Treasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) Act 2024 extended the National Credit Code to BNPL contracts, establishing the legal basis for licensing BNPL as regulated credit.

    Treasury

  7. Guidance · official
    Farrell Review of the Australian Payments System final report released

    The government-commissioned review (led by Scott Farrell) made 15 recommendations, including a single PSP licensing framework and expanding the RBA's power to designate emerging payment systems, the blueprint driving the current modernisation reforms.

    Treasury

  8. Decision · official
    Open banking goes live under the Consumer Data Right

    Live consumer data sharing began in the banking sector, letting customers authorise accredited third parties to access their banking data, enabling data-driven fintech services and account-based payment innovation.

    ACCC

  9. Law · official
    Consumer Data Right enacted

    The Treasury Laws Amendment (Consumer Data Right) Act 2019 inserted Part IVD into the Competition and Consumer Act, creating the legal foundation for open banking and consumer-directed data portability administered by the ACCC and OAIC.

    OAIC

  10. Decision · official
    New Payments Platform launched

    The industry-built NPP went live, providing 24/7 near-real-time account-to-account payments settled across the RBA's Fast Settlement Service, the core fast-payments rail underpinning modern Australian fintech and digital payments.

    Reserve Bank of Australia

  11. Decision · official
    Purchased payment facility regulation takes effect

    Under the Payment Systems (Regulation) Act 1998, holders of stored value were required to be APRA-supervised ADIs or hold an RBA authority/exemption, establishing the prudential regulation of stored-value payment products (e.g. PayPal later licensed as a PPF).

    RBA / APRA

  12. Law · official
    Payment Systems (Regulation) Act 1998 establishes RBA oversight

    The Act gave the RBA's Payments System Board powers to designate and regulate payment systems and purchased payment facilities, the 25-year-old foundation of payments regulation that the 2025 modernisation reforms overhaul.

    Reserve Bank of Australia

Sources

  1. treasury.gov.au/policy-topics/banking-and-finance/payments-licensing-reforms
  2. ministers.treasury.gov.au/ministers/daniel-mulino-2025/media-releases/new-legislation-modernise
  3. asic.gov.au/regulatory-resources/credit/buy-now-pay-later-credit-contracts-credit
  4. afca.org.au/news/supporting-2025-buy-now-pay-later-bnpl-reforms
  5. cdr.gov.au/rollout
  6. accc.gov.au/media-release/non-bank-lenders-join-consumer-data-right-as-next-stage
  7. rba.gov.au/payments-and-infrastructure/new-payments-platform/
  8. auspayplus.com.au/solutions/npp
  9. afslhouse.com.au/insights/apra-vs-asic-dual-regulation-stored-value-facilities-payment
  10. gtlaw.com.au/insights/key-topics/regulation-in-motion/payments-system-modernisatio

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Orientation, not legal advice: verify against the primary sources linked above. Last verified 23 Jul 2026. Methodology & how to cite · State of Technology Regulation 2026