The Reserve Bank says the rules governing Australia's credit card regime are too onerous and restrict competition, and it has recommended changes.
If the legislation is changed, the RBA would be free to begin issuing Visa cards and MasterCards in the same way as other banks.
The central bank released its recommendations on Friday after a year of public consultations.
It says the rules governing Australia's credit card regime have not kept up with changes in technology and the law should be changed to allow more companies to enter the local market.
Its proposed changes would affect the MasterCard and Visa systems.
It says if Parliament acts the changes could be made within the year.
The RBA says it is aware of "at least nine entities" that are interested in issuing credit card transactions in Australia but they think the costs are too high.
"In the absence of changes to access arrangements, some of these players will most likely not enter the Australian market directly … others may nonetheless decide to pursue authorisation and as a consequence bear significant costs," it says. "The environment has now changed significantly."
It says the Australian Prudential Regulation Authority - Australia's main financial regulator - also believes it has become too costly to supervise the credit card system participants.