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RBA warns of ‘lock-out’ risk from the rise of phone payments The Reserve Bank has warned that growth in payments driven by smartphones, watches and other wearable devices must not stifle competition, as this would push up costs for business. As more consumers move towards using their smartphone as a “digital wallet”, payment scheme eftpos has recently complained that they are too often being excluded in favour of Visa and Mastercard’s debit payment systems, and the RBA has recently echoed these concerns.
as had occurred previously.
RBA’s Michele Bullock, an assistant governor with responsibility for the financial system, said that the shift to tap-and-go payments had caused payment costs for businesses to rise.
“As payments move to different forms factors, such as mobile phones or wearables, and new technologies are introduced, there is a risk that some may use it as an opportunity to lock out competitors,” Ms Bullock said.
This happened because there was a sharp increase in payments going via the higher-cost Visa or Mastercard network instead of through eftpos
She said most banks were now dealing with this issue by giving businesses the option to divert these payments via eftpos, but the RBA was closely watching the next shift towards “digital wallets.”
The Reserve Bank is of the view that in moving to new technologies, merchants and consumers should
continue to have a choice of debit card network. “The Reserve Bank is of the view that in moving to new technologies, merchants and consumers should continue to have a choice of debit card network. Rules or policies of any scheme that have the effect of removing choice will reduce competition and result in rising costs to merchants,” she said. The RBA would keep a close eye on the debit card market, she said, to make sure there was a level playing field and would work with the Australian Competition and Consumer Commission to detect any anti-competitive conduct.
Queensland Small Business Week — 27-31 May organised a unique combined industry event to wrap up Queensland Small Business Week. MGA and the MGAQ Committee committed to working with the Queensland Small Business Minister, Hon Shannon Fentiman MP, to support and promote Queensland Small Business week that commenced on 27 May. The final event for Queensland Small Business week was an exhibition of local food growers, producers, manufacturers and local beverage producers such as boutique brewers and wineries. This prestigious event was held in the Boggo Road Gaol, Dutton Park, between 4.00pm and 7.30pm on Friday 31 May 2019. Emma Rice from the Queensland Small Business Unit, together with her team,
The purpose of this event was to showcase and demonstrate to ministers, MPs and the public, not only the high quality of locally produced foods and beverages but how well local Queensland businesses can work together in the one location, in an ecosystem, toward helping each other grow their businesses. This event was a Queensland showcase for what can be possible to drive economic growth within an ecosystem of small Queensland businesses, most of all for independent supermarkets. All three industries were showcased in a venue that demonstrated the potential of a strong small business
ecosystem working together to grow each other’s businesses. Guest speakers at this event included Minister Shannon Fentiman, MGAQ Committee member and model local Sunshine Coast business supporter, Roz White, David Kitchen, President of the Queensland Independent Brewers Association (Ballistics Brewery) and a member of the Queensland Wine Industry Association. Minister Fentiman officially welcomed attendees and outlined the picture of success for independent supermarkets to be able to support local producers – food and beverage, as well as, encourage creative thinking, facilitate innovation and applaud thought leadership.
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