PSR: UK Payment Systems to See Significant Upgrades in Coming Year

Better consumer protection, enhanced competition and technological advancements are the focus of new priorities set by the regulatory body overseeing the UK’s payment systems.

These measures, announced by the Payment Systems Regulator (PSR) following a mid-term review of its five-year strategic plan, aim to improve the security, efficiency and economic relevance of the nation’s payment infrastructure amid evolving market and technological conditions.

Since initiating its strategy in 2022, the PSR has made inroads into areas, such as introducing robust protections against Authorised Push Payment (APP) fraud and advancing open banking, as well as undertaking reviews of card fees to foster a more competitive market. These initiatives have positioned the UK as a frontrunner in safeguarding consumers and encouraging financial innovation.

“We’ve made great progress – especially in protecting consumers through our world-leading approach to APP fraud,” said David Geale, the PSR’s managing director. “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.”

Geale also added: “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.”

PSR commitments

The PSR plans to focus on three core commitments within its remit for the remainder of the strategy term.

  • Finalising consumer protections: The regulator will complete essential work on embedding APP fraud reimbursement requirements, including commissioning an independent review. This aims to solidify consumer confidence and ensure fairness in the handling of fraud cases.
  • Advancing payment technologies: In collaboration with the Financial Conduct Authority (FCA), the PSR will enhance frameworks for commercial open banking payments, starting with Variable Recurring Payments which offer consumers more flexibility and control.
  • Upgrading infrastructure: Working alongside the Bank of England, the PSR aims to upgrade the Faster Payments system and reform Pay.UK. These improvements are key for laying a foundation that supports future innovation and competition in payment services.

The PSR also highlights the role of teamwork among different stakeholders, including other regulators, industry players and trade bodies, in reaching these goals. A key move in boosting this collaboration is the creation of a joint executive role between the FCA and the PSR.

This role will help drive the ongoing development of a safe, innovative, and competitive payments sector, in line with the government’s economic growth mission.

The post PSR: UK Payment Systems to See Significant Upgrades in Coming Year appeared first on The Fintech Times.

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