The Reserve Bank has announced their decision to scrap bank regulations for credit card issuers, paving the way for competitors to issue their cards directly to consumers. This is set to take effect by the end of the year.

11 competitors are eyeing to become direct issuers of credit cards in the country. Newer payment providers have also considered issuing their versions of credit cards, such as Square, Payvision and Airplus International.

The decision to remove regulations promote competition for credit card issuers. The RBA defended this decision on a statement last week, stating that a possible failure among issuers will not negatively impact the overall financial system.

Read more about this on the Sydney Morning Herald website.