Banks have failed to allow online sellers to choose a cheaper payments network, the RBA said.
National Australia Bank and the Commonwealth Bank are laggards in enabling retailers to decide on sending card payments to the cheapest network, the Reserve Bank says.
Mr Connolly, head of payments policy at the RBA, said competition between payments networks is critical in stripping out costs for merchants. “We understand that it takes time for investment of this size to take place,” he said. “But it is possible that these fees could be lower if there was more competition in payments, particularly for mobile and online transactions.
ANZ, Westpac and NAB missed a deadline for enabling the service but are committed to switching it on next month. Mr Connolly suggested the government, through its overarching payments system plan, would make it easier for the banks to prioritise new investment.“Rather than the RBA having to use its powers of compulsion, the government and the RBA can work together to regulate the industry and implement the timeline,” he said.
He also confirmed major technology companies Apple, Google and Samsung have assured the RBA that retailers accepting payments from smartphones will be able to choose to route transactions to the cheaper eftpos debit network.
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