The UK’s Payment Systems Regulator Limited (PSR), an economic regulator for the £75 trill n payment systems industry in the country, has opened the proverbial door to a more competitive atmosphere for third party technology looking to provide nat nal payments infrastructure projects.
The impetus behind the move is the need for more competit n and complementary means to tradit nal bank-controlled monopolies such Backacs, Faster Payments Service and the Link interchange network.
By facilitating third party groups, PSR hopes to help shore up concerns in the market, i.e. common ownership and control of both the payment systems and the infrastructure provider. Furthermore, a PSR found in a recent market review also found that there existed a desire to adopt a common internat nal messaging standard to stimulate new entrants, something that has not come to fruit n to date.
Emphasis on Competit n
In shaking up the status quo for the provis n of payment services in the UK, the PSR is looking to support a competitive procurement process, ultimately helping support new infrastructure providers with different technology to enter the market.
The PSR views these changes as a “generat nal step” towards a wide encompassing change in the UK’s payments system. Furthermore, the latest PSR proposals coincide with the work of the Payments Strategy Forum, having just analyzed a new broad-based strategy or the country’s domestic issues.
For its part, the PSR expects that the inenter a phaser in a phase that will see the gradual preparat n for several procurement act ns.
According to Hannah Nixon, Managing Director of the PSR, in a recent statement on the new strategy: “The remedies we are putting forward today are another step in our strategy to bring about a once in a generat n change to UK payments. This will promote more effective competit n and innovat n that will help better meet the needs of all users of payment systems – be they consumers, small businesses, or banks.”