Reform of Australia's Payments System: Issues for the 2007/08 Review – May 2007 Introduction

1. As announced on 13 September 2006, the Reserve Bank is conducting a review of its reforms to Australia's card payment systems. It is seeking the views of interested parties on the effects of the reforms to date, and on how the regulatory arrangements can best promote competition and efficiency in the Australian payments system over the years ahead.
2. This paper sets out details on the timing and scope of the review and provides a summary of the Bank's reforms and their rationale. The paper also raises a number of specific issues on which the Bank is seeking comment from interested parties. Submissions on other relevant issues are also welcome.
3. The paper is structured as follows. Section I outlines the timetable for and scope of the review, while Section II provides some relevant background information. Section III summarises the Bank's reforms and the analysis that led to those reforms. Section IV summarises regulatory developments overseas, while Section V provides details of developments in the Australian market over the past five years. Finally, Section VI sets out the specific issues on which the Bank is seeking comment.