Payments Regulation in Asia - CMSPI Whitepaper

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Payments Regulation in Asia

Contents Report Introduction . ...........................................................................................................................................4 Payments 101 – Key Terms and Trends ...............................................................................................5 Report Introduction......................................................................................................................4 Payments Fees Definitions ............................................................................................................................5 Payment Method Definitions .......................................................................................................................5 Price Signaling, Competition Within the Card Market, Interchange Caps, and Pricing Transparency – Executive Summary...........................................................................7 Measuring Success of Regulatory Interventions .........................................................................................7 Price Signaling ................................................................................................................................................7 Payments Mix and Baseline Costs of Acceptance .......................................................................................6 Payments Mix by Country . ................................................................................................................... x Definition ...............................................................................................................................................7 Country Implementation ........................................................................................................................7 Impact Analysis ......................................................................................................................................7 Key Takeaways........................................................................................................................................8 Interchange Caps . ..........................................................................................................................................9 Definition ...............................................................................................................................................9 Country Implementation ........................................................................................................................9 Impact analysis........................................................................................................................................9 Key Takeaways .....................................................................................................................................10 Co-badging and Routing ..............................................................................................................................11 Definition .............................................................................................................................................11 Country Implementation ......................................................................................................................11 Impact Analysis ....................................................................................................................................11 Key Takeaways......................................................................................................................................12 Interchange and Network Fee Pricing Transparency ................................................................................13 Definition ..............................................................................................................................................13 Country Implementation.......................................................................................................................13 Impact Analysis.....................................................................................................................................13 Key Takeaways......................................................................................................................................13 Price Signaling, Competition Within the Card Market, and Interchange Caps – In-Depth..........14 Price Signaling ..............................................................................................................................................14 Australia.........................................................................................................................................x India...............................................................................................................................................x Japan.............................................................................................................................................x Singapore......................................................................................................................................x Public Resource for Cost Analysis ........................................................................................................ x Australia.........................................................................................................................................x India...............................................................................................................................................x Japan.............................................................................................................................................x Singapore......................................................................................................................................x Card Fees Paid by Country ................................................................................................................... x Australia.........................................................................................................................................x India...............................................................................................................................................x Japan.............................................................................................................................................x Singapore......................................................................................................................................x Price Signaling , Competition With the Card Market and Interchange Caps . ..................................... x Price Signaling . ...................................................................................................................................... x Card Surcharging..................................................................................................................................14 Cash Discounting by Countries............................................................................................................15 Case Study: Surcharging in Australia....................................................................................................16 Interchange Cap Regulation ........................................................................................................................18 Active Interchange Cap Developments in 2023...................................................................................20 Countries with Discontinued Interchange Caps...................................................................................20 Co-badging Regulation ................................................................................................................................21 Case Study: Australia Co-badging Mandate and Routing....................................................................22 Card Surcharging........................................................................................................................... x Cash Discounting by Countries.....................................................................................................x Australia Surcharging Case Study.................................................................................................x

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