The PSR's response to the National Payments Vision
On 14th November, The UK Government Published The National Payments Vision report. It includes a plan for strengthening the UK's payments ecosystem. It focuses on supporting economic growth through enhanced innovation, competition, and security in financial services. Key points include:
Improving Infrastructure: The report highlights the importance of resilient and secure payment systems. It calls for collaboration between the government and regulators, such as the Financial Conduct Authority (FCA) and the Payment Systems Regulator (PSR), to simplify and improve the regulatory framework for payments.
Preparing for Future Technologies: The report recognises that emerging technologies—such as distributed ledger technology, artificial intelligence, and Open Banking—will shape the future of payments. It outlines plans to upgrade Faster Payments and explore a Central Bank Digital Currency (CBDC), known as the "digital pound," as well as promote account-to-account payments for retail.
Three Key Areas of Focus: The Vision centres on innovation, competition, and security. The intention of these priorities is to provide consumers and businesses with varied, secure payment options and maintain the UK’s position in financial technology.
Enhancing Fraud Prevention and Consumer Protection: A key goal is to address payment fraud through stronger detection systems and improved coordination among sectors. This includes increasing intelligence-sharing capabilities to protect consumers.
Collaborative Implementation: The report introduces a Payments Vision Delivery Committee to oversee implementation, supported by an engagement group with representatives from both industry and government. This structure aims to foster collaboration across sectors to meet the Vision’s objectives.