News: Z1P Australia's central bank tells Buy Now Pay Later firms to drop surcharge ban, page-21

Blah Blah Blah RBA does not CURRENTLY have the power

New powers needed

The Reserve Bank does not currently have the power to make buy now, pay later providers remove the clauses preventing their costs from being passed on. This is because the RBA only has jurisdiction to act over payment “systems”.Courts have construed the definition of a payments “system” very narrowly so buy now, pay later providers would not be likely to be considered a payment system, and therefore could not be forced by the RBA to respond.The RBA acknowledged in its report that “given the complexity of the regulatory issues, the bank will continue to engage with Treasury” as part of its separate review of the Australian payments system.