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Speaker 1: Good morning and happy Tuesday. Welcome to the Daily OS.

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Speaker 1: I'm Zara Seidler and I'm joined by Sam Kolowski, who is,

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Speaker 1: of course the co founder of The Daily Ohs. Today

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Speaker 1: we're taking you through the day's news as well as

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Speaker 1: a deep dive into the wallet that sits in your

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Speaker 1: pocket every day. Now, before we get there, take us

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Speaker 1: through what happened yesterday in the COVID years.

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Speaker 2: A new record was set in New South Wales yesterday

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Speaker 2: with twelve hundred and ninety locally acquired cases of COVID.

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Speaker 2: New South Wales Health also reported four further COVID nineteen

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Speaker 2: related deaths. The Premier was joined yesterday at the press

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Speaker 2: conference by Joe Ibrahim, who was a paramedic in New

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Speaker 2: South Wales, and it was a particularly emotive message he

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Speaker 2: delivered to the community.

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Speaker 3: When I joined this profession years ago, now I knew

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Speaker 3: that it came with a level of risk to serve

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Speaker 3: our community for the very first time. Though I'm now

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Speaker 3: bringing this risk due to this contagious virus home to

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Speaker 3: my wife and my beautiful boys. I know and take

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Speaker 3: comfort in the fact that vaccinations break the chain of transmission,

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Speaker 3: and I'm grateful to be vaccinated. This truly does give

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Speaker 3: me comfort.

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Speaker 2: Meanwhile, in Victoria, there were seventy three locally acquired cases

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Speaker 2: of COVID yesterday. People are continuing to digest the news

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Speaker 2: that lockdown won't be finishing anytime soon, and in the

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Speaker 2: act twelve locally acquired cases were recorded, with an announcement

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Speaker 2: on lockdown expected today.

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Speaker 1: Yesterday, the US confirmed it had conducted a drone strike

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Speaker 1: in Kabul, reportedly targeting isis K And if you're not

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Speaker 1: familiar with who isis k is, head to our instagram

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Speaker 1: because we did a bit of an explainer. But the

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Speaker 1: lowdown is that they are an affiliate group of the

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Speaker 1: Islamic State. The strike killed a suicide car bomber suspected

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Speaker 1: of preparing to attack the Kabul airport. Speaking to the

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Speaker 1: Associated Press, the official said that witnesses to the strike

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Speaker 1: reported two parked cars were targeted in a residential building

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Speaker 1: near the airport.

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Speaker 2: Sixteen years to the day after Hurricane Katrina hit the

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Speaker 2: US state of Louisiana, Hurricane Ida has made landfall, with

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Speaker 2: wins of two hundred and forty kilometers per hour and

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Speaker 2: three hundred thousand households already without power. The Federal Emergency

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Speaker 2: Management Agency has warned of the catastrophic effects of the

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Speaker 2: Category four hurricane. It comes as the state deals with

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Speaker 2: another surge in COVID nineteen cases. Louisiana currently has the

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Speaker 2: third highest rate of infections in the US, with over

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Speaker 2: two thousand, five hundred people in hospital. On NBC's Today

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Speaker 2: Show yesterday, there was a live cross to a reporter

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Speaker 2: in the eye of the storm.

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Speaker 4: Have a listen the eyewalk fifteen miles wide with one

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Speaker 4: hundred and fifty mile per hour winds. It's basically a

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Speaker 4: fifteen mile wide F three tornado. That's what's coming in

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Speaker 4: to this area.

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Speaker 1: Today's good news is again courtesy of the Paralympics. Paralympian

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Speaker 1: Avenue Lacara has become the first woman from India to

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Speaker 1: ever win gold at the Games. Lacara competed in the

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Speaker 1: R two Wiman's ten meter air rifle standing sh one

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Speaker 1: event and finished with a world record equaling a total

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Speaker 1: of two hundred and forty nine point six.

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Speaker 2: There are millions of Australians who pay for their coffees,

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Speaker 2: their supermarkets and their shopping with a card on your

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Speaker 2: mobile phone. We're talking about Apple Pay, Google Pay, and

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Speaker 2: China's we Chat Pay. They're the big three. Those payment

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Speaker 2: services have come into the spotlight this week, with Federal

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Speaker 2: Treasurer Josh Fridenberg penning an opinion piece in the Financial

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Speaker 2: Review talking about the tighter regulation ahead for these big

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Speaker 2: tech players. The reason is that these players are not

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Speaker 2: currently designated as payment systems, and that means that they

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Speaker 2: fall outside all the regulations that credit cards and other

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Speaker 2: banking mechanisms fall into. Fridenberg said, Ultimately, if we do

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Speaker 2: nothing to reform the current framework, it'll be Silicon Valley

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Speaker 2: alone that determines the future of our payment system, a

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Speaker 2: critical piece of our economic infrastructure. This is a really

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Speaker 2: interesting development in this space and it's something that we

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Speaker 2: should talk about in a little bit more depth.

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Speaker 1: At the moment, who decides who the payment providers can be?

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Speaker 2: That power falls solely onto the Reserve Bank of Australia.

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Speaker 2: They've got the book where they can say that you

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Speaker 2: have a license to be a payment provider. However, recent

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Speaker 2: reports by the RBA have shown that payments through digital

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Speaker 2: wallets have grown to eight percent of in person card transactions.

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Speaker 2: That is up from two percent in twenty sixteen.

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Speaker 1: So this is the same RBA who announces interest rates.

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Speaker 1: In my head, at least, the RBA has always seemed

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Speaker 1: really old school, so it's unusual to me that they're

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Speaker 1: facilitating this new financial technology.

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Speaker 2: They've often been criticized as being a little bit behind

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Speaker 2: the times and taking a few years to catch up

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Speaker 2: with technology, and we've seen that across the financial regulation

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Speaker 2: space with something like buying now, pay later services. Regulators

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Speaker 2: are still getting the head around other parts of the

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Speaker 2: economy that are emerging, like cryptocurrency as well. The RBA

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Speaker 2: is responsible for facilitating how money moves through our society

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Speaker 2: and so the issue, and this was an issue actually

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Speaker 2: raised by the Commonwealth Bank last month, is that these

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Speaker 2: tech players could have increasing control about the tools with

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Speaker 2: which we pay. And I'm talking here literally about the

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Speaker 2: technology that we use to pay for our coffee. So

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Speaker 2: an example of how these payment providers could at the

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Speaker 2: moment restrict competition is if you could only pay for

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Speaker 2: an Apple product via an Apple Pay on your iPhone.

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Speaker 2: Another example of where the big banks are a little

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Speaker 2: bit annoyed with the payment providers or the tech companies

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Speaker 2: that are facilitating payments is that all the banks have

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Speaker 2: to contribute a cost to the way that the payment's

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Speaker 2: infrastructure in Australia is run. Money changing hands costs money,

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Speaker 2: and when you pay for something in a shop, there's

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Speaker 2: a whole bunch of systems behind that. The tech companies

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Speaker 2: aren't in that same boat. They don't have to fork

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Speaker 2: out money to sustain Australia's payment infrastructures.

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Speaker 4: Now.

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Speaker 2: Of course, it's worth noting that the banks are, of

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Speaker 2: course voicing these concerns because they're worried about their place

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Speaker 2: in the market, and they're worried about keeping their customers

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Speaker 2: who are currently credit and debit card holders themselves. When

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Speaker 2: this criticism from the Commonwealth Bank came out last month,

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Speaker 2: Apple came back to this criticism by essentially saying they

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Speaker 2: don't have enough of the market for this to be

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Speaker 2: a concern. They said that they have about ten percent

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Speaker 2: of Australian transactions in their Apple wallet.

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Speaker 1: Clearly, it's enough of a hot topic to have caught

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Speaker 1: the attention of the Federal Treasurer Josh Friedenberg. What can

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Speaker 1: we expect regulation in this space to look like?

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Speaker 2: It was actually enough to catch the attention of the

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Speaker 2: Bank for International Settlements, which I'm sure the Treasurer is

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Speaker 2: paying close attention to They called for global financial watchdogs

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Speaker 2: and the federal treasury departments of the world to urgently

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Speaker 2: get their heads around the growing influence of big tech.

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Speaker 2: Some of the key recommendations that could be included in

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Speaker 2: new legislation to regulate this space could be that the

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Speaker 2: government is given power to designate tech companies as payment providers.

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Speaker 2: The legislation could also include a new definition of a

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Speaker 2: digital wallet and a new understanding of how neatly that

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Speaker 2: falls in this space. There's also calls for the government

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Speaker 2: and the industries to work together to establish a plan

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Speaker 2: for the wider payments ecosystem and how this is going

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Speaker 2: to be funded from the back end, so that when

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Speaker 2: you tap and go and pay for something on your phone,

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Speaker 2: that Apple are actually making a contribution to the technology

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Speaker 2: that runs our economy. Feel and me. This could affect

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Speaker 2: how we use our digital wallets to pay. It could

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Speaker 2: mean that there's credit card fees where there's not currently

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Speaker 2: and the whole system would just be a little tighter

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Speaker 2: than it is now. It's a really interesting space. I

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Speaker 2: don't carry a wallet around with me at all, and

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Speaker 2: it's a fascinating tech topic to keep an eye on.

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Speaker 1: That is all we have time for today. However, if

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Speaker 1: you are looking for more tech news or COVID news,

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Speaker 1: whatever tickles your fancy, head over to our Instagram at

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Speaker 1: the Daily OS. It's where over two one hundred thousand

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Speaker 1: young people get their news every day, and we would

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Speaker 1: love to welcome you to our community. Have a brilliant Tuesday,