Credit cards, digital wallets in sights of federal inquiry

Credit cards and digital wallets are now the focus of a new federal parliamentary inquiry into their use.

The announcement comes as shoppers gear up for both Christmas and Boxing Day sales.

According to federal parliament, in 2024, Australians spent nearly $70bn online, a new record.

Year on year, online spending is growing by about 12%, largely through credit card use.

Both credit cards payment schemes and digital wallets will be subject of the inquiry.

The House of Representatives Standing Committee on Economics has already adopted the inquiry’s terms of reference.

CREDIT CARDS CONCERN

Committee chairman and NSW-based Federal MP Ed Husic says: “The way credit cards work, their costs and other impacts on everyday consumers really matters to Australians confronting cost of living challenges.

“After spending up ahead of Christmas, many Aussie consumers will scan a sharp eye over their credit card statements and ask questions about how they’re charged,” he says.

“This inquiry will give Australians a chance to have their say on whether they think current payment schemes are fair, accessible, competitive and affordable.”

Husic says “it’s clear” from existing evidence that payment schemes and digital wallets are posing a growing cost for small businesses and consumers.

“This inquiry offers the opportunity to do a deeper dive into that,” he says.

“Running a small business is hard work. Minimising costs and overheads is a priority for small businesspeople who are always looking for payment systems that can offer a better deal and make their lives easier.”