The Payment Systems Regulator (PSR) has today set out commitments for the next two years following the mid-term review of its five-year Strategy. Payments are vital to the UK economy and the PSR has an important role in supporting a growing, competitive payments sector. These commitments set out an impactful programme of delivery as the regulator seeks to achieve world-leading payment systems where competition and innovation deliver secure, accessible, and value-for-money services that meet the needs of people and businesses.
Since launching its Strategy in 2022, the PSR has made strong progress in delivering positive change, including introducing world-leading protections against APP fraud, advancing Open Banking, and reviewing card fees. However, the payments landscape is constantly evolving, with new technological and market innovations.
This review reflects extensive engagement with stakeholders, trends in payments – both at home and abroad, the Government’s growth mission, and the impact of the National Payments Vision (NPV).
David Geale, the PSR’s Managing Director, said:
“We’ve made great progress – especially in protecting consumers through our world-leading approach to APP fraud. But we know there’s more to do. By taking ambitious but realistic action, we can ensure payment systems remain competitive and innovative, delivering real benefits for users and supporting economic growth. Collaboration with others has been key to our success so far, and it will remain central to how we achieve our priorities. We look forward to working with other regulators and stakeholders across the payments ecosystem to deliver this updated Strategy.”
Delivering impact for the remainder of the Strategy term
Having reflected on these developments, the PSR will focus on three core commitments within its remit for the remainder of the Strategy term. These are to:
Complete the important work underway – protecting consumers and supporting competition. The PSR will fully embed its APP fraud reimbursement requirements, including commissioning an independent review, and deliver the outcomes from its card market reviews. The PSR will work closely with the FCA to enable it to take forward work on the overall framework for commercial Open Banking payments, focussing on the initial phase of Variable Recurring Payments, which offers consumers more choice and control when making payments.
Drive forward, with the Bank of England, work to upgrade the Faster Payments system, and reform of Pay.UK, as well as assess long term retail infrastructure needs. This is critical to providing a sound foundation for future innovation and competition in payments.
Sharpen its focus on competition and innovation in payments systems, supporting economic growth and enabling the ecosystem of the future. The PSR will further build its innovation capability, focussing on removing unnecessary barriers to payments innovation and helping to create the conditions for innovation in payment systems to thrive. The PSR will ensure that as it takes action, it considers how that supports economic growth and will play its role in supporting the Government’s growth mission.
Collaboration between regulators and the private sector is key to success of UK payments. While the PSR’s remit focuses on payment systems, it works closely with industry participants, consumers, businesses, and trade bodies to gather insights and deliver change across the ecosystem. The PSR will work even more closely with the FCA, Bank of England and other authorities to deliver positive outcomes. To further strengthen alignment and working relationships, together with the FCA, we have created a new joint role of Executive Director of Payments and Digital Assets at the FCA and Managing Director of the PSR . This will support delivery of an innovative, safe and competitive payments sector into the future.
