Australia Unveils Sweeping Payments Reforms

Australia's payments industry is undergoing its most sweeping reform in over two decades. On October 1, 2026, approximately $910 million in annual interchange revenue will disappear from the system.

This change is not incremental but structural demolition, bringing about a fundamental rebalancing of value across the payments ecosystem. The Reserve Bank of Australia's (RBA) reforms aim to adapt the industry to a digital economy that processes billions of transactions annually.

The RBA estimates that consumer credit card interchange caps will drop from 0.8% to 0.3%, a reduction of approximately 62%. Debit and prepaid card interchange caps will fall to 8 cents per transaction or 0.16% of transaction value, challenging issuers' revenue models.

The removal of surcharging on debit, credit, and prepaid cards is also set to take effect from October 1, with the RBA estimating a combined benefit to consumers and businesses at approximately $1.8 billion annually.