Australian banks want surcharges banned at the checkout, but their top lobbyist says reforms must not give foreign tech giants a windfall.
Simon Birmingham, new head of the Australian Banking Association, told Sky News Business that outlawing confusing surcharges is “long overdue” and will end consumer frustration.
Retain Interchange Fees
But he warned against deeper cuts to interchange fees — the charges banks pay each other for card transactions — arguing they are already among the lowest in the world. Cutting further could force banks to raise card fees, shorten interest-free periods, or reduce rewards programs.
Birmingham urged regulators to focus instead on the growing power of Apple Pay, Google Pay, and AMEX. These firms dominate mobile payments and, he said, should not gain an advantage at the expense of local banks and consumers.
While mobile wallet payments are surging, around 1.5 million Australians still rely heavily on cash. Birmingham stressed the need to keep cash accessible for older and lower-income citizens.
Digital Growth vs. Cash Reliance
Australians are rapidly shifting toward mobile and digital payments. RBA and ABS figures show more than four billion mobile wallet transactions were completed last year.
Cash is still vital for at least 1.5 million Australians, a NewsBlaze report says. Many of these consumers may be older or on lower incomes. The share of cash in household payments dropped from 70% in 2007 to just 13% in 2022, before stabilizing, and growing over the past few years.
Birmingham said policymakers must ensure cash remains available for those who choose or need it.
“While many consumers find mobile and card payments faster and more convenient, a growing group consciously choose cash for privacy, control, or access reasons,” he said.
Keeping Cash
NewsBlaze reported ongoing challenges in Australia’s cash distribution system, particularly with major cash-in-transit provider Armaguard. Birmingham said banks are working with stakeholders to maintain reliable nationwide logistics.
Surcharge Ban Soon
“The ban on surcharges should proceed quickly,” he said, “but reforms must balance innovation, fairness, and consumer choice.”
