The Reserve Bank of Australia’s Payments System Board met in March 2026 to review critical aspects of the nation’s payment infrastructure, with a focus on cash distribution, card payment costs, and the modernization of the account-to-account (A2A) payments system. The meeting highlighted ongoing challenges in maintaining a resilient and accessible payments ecosystem, particularly in rural and remote areas of Australia.

Cash Distribution and Regulatory Framework

One of the central topics of the meeting was the future of cash distribution arrangements. The Board acknowledged the continued importance of cash access for many Australians, especially in regional and remote communities. Members expressed support for a proposed regulatory framework that would include crisis powers for the public sector to manage risks to cash distribution services.

“Access to cash remains vital for many Australians, particularly in regional and remote communities,” the Board stated in its meeting summary. The proposed framework aims to ensure the long-term sustainability of the cash distribution system while allowing the government to intervene in times of crisis.

Review of Merchant Card Payment Costs

The Board also reviewed the regulatory landscape surrounding merchant card payment costs and surcharging. Members discussed the evidence and public interest case for amending the regulation of card systems. The discussion focused on the relative merits of options including card payment surcharging, interchange fee regulation, and the transparency of card payment fees.

The Board agreed to publish a Conclusions Paper and an implementation timeline for any regulatory action by the end of March 2026. This move signals a potential shift in how card payment fees are managed, with an emphasis on fairness and transparency for both merchants and consumers.

System-Wide Resilience of the Payments System

Members of the Board also discussed the system-wide resilience of the Australian payments system, citing findings from the RBA’s analysis of systemic risks. These risks include limited interoperability, third-party dependencies, and concentration risks in merchant card acquiring.

The Board expressed support for industry efforts to strengthen resilience and contingency arrangements to ensure the payments system meets the high reliability standards expected by Australians. The RBA will continue to contribute to these efforts by sharing its analysis with industry stakeholders and providing guidance.

Account-to-Account Payments Modernization

The Board also addressed developments in the A2A payments system, noting industry progress against the recommendations from the 2025 Risk Assessment regarding the decommissioning of the Bulk Electronic Clearing System (BECS). The removal of the 2030 target end-date has reduced the risk of a disorderly transition in the short to medium term.

“The removal of the 2030 target end-date has reduced the risk of a disorderly transition in the short to medium term,” the Board noted in its summary. Members acknowledged the initiatives taken by industry to support the modernization of the A2A payments system, including the establishment of the A2A Payments Roundtable.

Despite these positive steps, the Board expressed concern about the lack of consensus within the industry on how to process bulk payments in the future. This lack of consensus is impeding effective decision-making needed to establish a path forward for A2A payments that aligns with the public interest.

Project Acacia and Future Financial Innovation

The Board also discussed the findings from Project Acacia, a major initiative examining the potential benefits of tokenized asset markets for the Australian financial system. Members noted the barriers to the development of tokenized asset markets in Australia, including those raised by industry participants during the project.

“The potential benefits to the functioning of the financial system that could be unlocked by the growth of tokenised asset markets are significant,” the Board stated. Members expressed support for an ongoing program of work that will promote responsible innovation in Australia’s wholesale payments and financial market infrastructure.

The final report from Project Acacia is expected to be published in late April 2026, offering further insights into the future of financial infrastructure in Australia.

With the Board’s focus on ensuring the resilience, accessibility, and modernization of the payments system, the coming months will be critical for shaping the future of Australia’s financial landscape. The upcoming release of the Conclusions Paper and the Project Acacia report will provide further clarity on the RBA’s priorities and the industry’s response.