The Australian Prudential Regulation Authority (APRA) today introduced a new prudential standard and authorisation guidelines for providers of purchased payment facilities or PPFs, a new class of authorised deposit-taking institution (ADI). PPFs are new forms of payment instruments such as stored-value cards and internet-based payment systems or 'electronic purses'.

The new standard, which follows consultation with interested parties, applies a simplified framework for capital adequacy, liquidity and operational risk to PPF providers that have stored value at risk. PPF providers must also meet ADI prudential standards on governance, fitness and propriety, outsourcing, business continuity management and auditing requirements.

ADIs authorised to conduct general banking business are not required to seek further authorisation to operate a PPF.

APRA's Chairman, Dr John Laker, said the new prudential standard recognises the unique characteristics of PPF providers within a consistent framework for the supervision of ADIs.

"As PPFs begin commercial operations in Australia, this new prudential regime aims to give consumers confidence that providers of innovative payment facilities are prudently run."

APS 610 Prudential Requirements for Providers of Purchased Payment Facilities and the associated Guidelines on Authorisation of Providers of Purchased Payment Facilities come into immediate effect, and are accessible on the APRA web site at:

APS 610 (74KB) Prudential Requirements for Providers of Purchased Payment Facilities

Guidelines on Authorisation of Providers of Purchased Payment Facilities


The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the financial services industry. It oversees banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, friendly societies, and most members of the superannuation industry.
APRA is funded largely by the industries that it supervises. It was established on 1 July 1998. APRA currently supervises institutions holding approximately $2.2 trillion in assets for 20 million Australian depositors, policyholders and superannuation fund members.

Media and industry inquires only:
Pauline Hayes, Acting Head of Public Affairs
Australian Prudential Regulation Authority
Telephone: 02 9210 3143
Mobile: 0417 528 660

All other inquires:
APRA Contact Centre
1300 131 060