UK Payments System Regulator publishes proposed strategy designed to unlock the potential of UK payments

Proposed 5 year strategy issued by Payment Systems Regulator.

The PSR's strategy  sets out  an approach that  aims to make sure payments and payment systems  work  well for everybody and that there is fair competition and access to payments for all. The approach is to protect and embrace what’s working well, change what’s not,  and lay the foundations for new products, ways to pay and new payment systems so that they develop with the needs of real people and businesses in mind. ​  
 
Key elements of the PSR Strategy   
The strategy sets out the PSR’s perspective on payment systems and the markets they support. It considers what is going well, where there is scope for improvement, and the risks and issues that need to be tackled.   

• Priority 1: Ensure users have continued access to the payment services they rely upon and support effective choice of alternative payment options.  
• ​Priority 2: Ensure users are sufficiently protected when using the UK's payment systems, now and in the future. 
• Priority 3: Promote competition in markets and protect users where that competition is not sufficient, including a) between payment systems within the UK and b) in the markets supported by them.   
• Priority 4: Ensure the renewal and future governance of the UK's interbank payment systems supports innovation and competition in payments.

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What this looks like in practice   
In the strategy the PSR also sets out a number of actions it will take to deliver these priorities. Some of the key actions it is proposing include:   

• Promoting  competition between payment systems  so that, for example,  in future people may  choose to use interbank payments (when a payment moves from one bank account to another, like an online transfer) to buy their groceries. Most people currently  use  card payment systems to do this.  
• Continuing to protect access to cash for those that rely on it.  
• Making  sure that,  as interbank payments develop (like in the example above), so do the  consumer  protections  associated with them.  
• Supporting  developments to  Pay.UK’s  governance of the interbank rules so it has greater ability to enforce compliance with its rules and  make  changes that improve outcomes.  
• Understanding and taking account of the perspective of vulnerable consumer groups towards new ways of paying and the choices available to them.  

 
What happens next  
This document is a proposed  strategy .  The PSR is now seeking feedback  from everyone with an interest in payment systems and how they work.  The deadline for responding is  10 September 2021.  
 
This will  help the PSR finalise its approach and ensure  it is focused on the right outcomes,  and - ultimately - have a strategy that is balanced and credible in the eyes of those its regulates and protects.   
 
As well as gathering written feedback  the PSR is  arranging a series of engagement events to listen and understand  the views of its stakeholders.  More information about these events can be found on its website.   
 
If you have any questions, please get in touch via [email protected] 

Links: 

1. Proposed 5 year strategy 
2. ​Linkedin Post