Proposed Variation to the MasterCard and Visa Access Regimes: Consultation Document – December 2013 4. The Objective of Reform

In line with the requirements of the Payment Systems (Regulation) Act 1998, the objective of reforming current access arrangements is to foster greater competition and efficiency in the payments system by achieving a balance between new entry to the MasterCard and Visa systems and risk in those systems that is in the public interest.

This objective might be achieved by:

  • providing greater scope for the entry of new participants in the MasterCard and Visa systems, including by entities that are not currently eligible because they are not ADIs
  • providing a suitable mechanism for the risk to the MasterCard and Visa systems from new entrants to be assessed and managed
  • ensuring that regulatory imposts on participants are not higher than warranted.

A subsidiary objective is to ensure that regulatory resources (including those of APRA) are directed to the greatest public benefit and not to functions more appropriately performed by the private sector.