Members of the Australian Payments Clearing Association (APCA) are currently exploring the possibility of implementing a voluntary code of practice to regulate digital wallets in the country.
The association’s 100 members were due to respond to a private consultation draft of a Third Party Digital Wallet Security Code by the end of January, reports the Sydney Morning Herald.
The country’s banking sector is concerned that players in the mobile wallet market such as Google, Apple and Samsung are not bound by the same strict security and privacy protocols as they are. “Australian financial institutions are subject to prudential regulation and ongoing supervision in relation to their privacy compliance. Mobile wallet providers are not subject to the same level of ongoing supervision,” the consultation paper says.
“APCA is currently conducting a targeted industry exploration of the potential benefits to the industry in having a security code for digital wallets,” the association told NFC World. “This industry engagement process involves regulators, financial institutions, cards schemes and technology providers.”