Our quarterly newsletter provides a snapshot of what’s happening in payments. We cover current topics, industry activities and news, as well as upcoming events. We also provide an overview of regulatory developments.

1. PaymentsMonitor
Third Quarter, 2017
CEO'sCorner
Welcome to our new
look Payments
Monitor! We’re excited
to bring you this issue
featuring our new
brand identity.
In October, I had the opportunity to participate in two leading global events on the
international financial community calendar. Sibos 2017 explored contemporary
issues including real-time payments, cross border payments, cybercrime,
correspondent banking threats and opportunities, and Fintech. Money 20/20 had
a future focus, with topics ranging across AI and robotics, Blockchain, mobile,
gender parity, and social demographics. The wide-ranging topics covered at these
events reinforced the pace and scale of change in payments - and Australia is no
exception.
We are delighted with the progress being made here in introducing an open loop
payments environment for transport. The NSW pilot started on the Manly ferry in
July, giving commuters the option of using their own debit or credit card to tap on
and off. We are now working with industry, and transport authorities across
Australia to develop a national framework and roadmap for open loop transport.
Fraud prevention remains a key focus and we continue to coordinate industry
measures through our Issuers and Acquirers Community. The latest Australian
Payments Fraud Report providing data for 2016, highlights recent industry
initiatives to tackle growing online fraud. More on this is provided in this issue.
In August, AusPayNet supported the Australian Payments Council’s industry-wide
hackathon. Taking part on the judging panel in Sydney, I was struck by the range
of apps the teams created that clearly illustrated the value of transactional data.
It was particularly pleasing to see the collaboration between the 120 participants
including developers, designers and business representatives.
Our inaugural Australian Payment Summit, which will be held in Sydney on 13
December, will focus on innovation and collaboration, exploring emerging issues
and topics in-depth. Developments around real-time payments, digital identity,
and Open Banking are core components of the program, with an opening keynote
address from Dr Philip Lowe, Governor of the Reserve Bank of Australia. We hope
many of you are able to join us at this new industry event.
Latest BlogsAustralian Payment Summit

2. IndustryEvents
We invite you to join
us at the inaugural
Australian Payments
Summit, on 13
December 2017.
We were pleased
that so many of our
members were able
to join us at our
recent ‘Insider’s View
of Digital Identity’
forum.
Australian Payment Summit
AusPayNet has teamed up with Transactives, the leading conference organiser of
European Payment Summit and Global Payment Summit, to bring the Australian
Payment Summit to Sydney on 13 December 2017.
Working closely with Transactives, we have secured a program of more than 20
high-calibre industry speakers for the inaugural one-day event themed “Towards
a New World of Payments”. We are delighted to have Dr Philip Lowe, Governor of
the Reserve Bank of Australia as the opening keynote speaker.
The summit will bring together professionals, decision-makers and disrupters
from across the country and abroad to discuss some of the most pressing topics
in payments. These will include digital identity, open banking and fraud.
We look forward to welcoming our members, the wider payments community,
and anyone with an interest in payments. Registration for the event is now open
on the Australian Payment Summit website.
More details about the program are available via the link below.
An Insider's View of Digital Identity
Digital ID was the topic of the day recently when we hosted a member forum,
bringing together international speakers:
• Chuck Hounsell, Senior Vice President Payments, TD Bank
• Andre Boysen, Chief Identity Officer, SecureKey
• David G.W. Birch, Author and Consult Hyperion founder
We were pleased that so many of our members were able to join us to hear first-
hand how the Canadian banks stimulated the identity market.
Chuck spoke about the importance of collaboration in creating an identity
community and described his professional journey in successfully persuading
his peers in other banks to work on the development of a joint identity
proposition. Andre Boysen built on Chuck’s message describing how SecureKey
was instrumental in establishing the Digital Identity and Authentication Council
of Canada (DIACC). DIACC extends the community of participants to a much
broader set of organisations, including telecommunications organisations and
retailers.
Australian Payment Summit 2017

3. Dave Birch rounded off the afternoon with some insights into the future of money
from his new book Beyond Babylon Before Bitcoin which led to interesting debate
among members!
If you were unable to attend the event but would like to hear more, please get in
touch and we will share the presentations with you. For more information on
DIACC click on the link below.
DIACC

4. IndustryNews
In July, we
released the
Australian Fraud
Report for 2016.
Card-not-present
fraud remains a
key focus for the
industry.
We supported the
recent Standards
Australia - Digital
Transaction
Technologies
Forum.
Australian Payments Fraud Report 2017
In July, we released the Australian Fraud Report; Jan-Dec 2016 Data, which
highlights trends in payments fraud.
The most recent figures show that Australians continue to embrace the
convenience of cards, spending more than ever on them. They also show that as
payments are increasingly moving online, so are fraudsters. In 2016, card
transactions totalled $714.5 billion, of which 0.074% was fraudulent, with 78% of
this occurring online.
In addition to highlighting the key trends, the report provides information on
industry initiatives to combat online fraud, including:
• New research to help better target preventative measures. The research
covers the impact of card-not-present (CNP) fraud on consumers,
learnings from other countries, and how the online payments landscape
and fraud are changing.
• New guidelines for issuers and acquirers outline best practice for CNP
fraud detection, customer authentication, and data security.
• Building a merchant education program to generate greater awareness of
CNP fraud and prevention measures.
Australia is well-advanced in fraud prevention technology, as a result of the
industry’s leading investment in EMV chip technology, tokenisation and online
customer authentication tools.
The Australian Payments Fraud Report 2017 (January 2016 – December 2016) is
available via the link below.
Standards Update
We were delighted to support Standards Australia’s Digital Transaction
Technologies Forum on September 29. The development of standards to ensure
the security of financial transactions forms an important part of AusPayNet’s
industry work. Standards Australia offers important insights about the role of
standards:
“Australia is one of the global leaders in the adoption of digital technologies and a hub for
the finance industry. Australia’s financial services sector is the largest contributor to the
national economy, contributing around $140 billion to GDP over the last year and the
World Economic Forum Financial Development Index of 2012 rated Australia as one of the
world’s best performing financial centres. The accelerating rate of technological change
and increasing penetration of mobile devices, combined with shifting customer
preferences, is having dramatic implications for the ways in which financial services are
structured, delivered and consumed. Standards play a key role in promoting best
practice, safeguarding consumers and ensuring our financial sector is efficient,
Australian Payments Fraud Report 2017

5. predictable, sustainable and internationally competitive. The use of standards allows for
automation of complex financial transactions and standards make the technical aspects
of these implementations easier, cheaper and faster.”
Discussion at the forum covered emerging financial transaction technologies,
particularly within the payments industry and considered the need for
standardisation in this area.
RegulatoryRound-up
We provide
updates on the ATM
Access Code
Review & the
Productivity
Commission
Inquiry into
Competition in the
Australian
Financial System.
ATM Access Code and Access Regime
We recently reviewed the ATM Access Code which was introduced in 2009,
alongside the Reserve Bank of Australia’s Access Regime, to facilitate access to
the ATM network. As part of the review, stakeholders shared their perspectives on
future directions and innovation trends within the ATM industry.
In August 2017, the Payment Systems Board (PSB) discussed the findings of the
industry consultation, including the industry's planned process to review and
update the access framework.
This work is ongoing with outcomes expected in 2018.
Productivity Commission Inquiry into Competition in the
Australian Financial System
The Productivity Commission (PC) recently undertook an inquiry into Competition
in the Australian Financial System to examine competition across different
financial products and markets.
The focus of the inquiry is to establish whether there are barriers to competition
through innovation, and – where innovation does occur – whether its benefits
are directed towards consumers.
The enquiry further complements work previously undertaken by the PC in:
• Data Availability and Use and Competitiveness
• Efficiency of the Superannuation System
The Competition in Financial Systems inquiry takes a holistic view of financial
products and services provided to households, small businesses and large
corporations.
Our submission provided context on recent drivers of innovation and competition
within the payment industry - both in Australia and internationally; in addition to
illustrating how We have played a pivotal role in driving improvements to the
payments system.
Read the submission below. Visit the Australian Government Productivity
Commission for more on the process for public inquiries.
Digital Transaction Technologies Forum

6. BLOGS
Click through on the images below to read our recent blogs.
Submission to the Productivity Commission