Considering its role in creating a growing and competitive environment in the UK’s payment sector, the PSR set out a programme of delivery as the regulator intends to achieve an advanced payment system where participants can offer secure, accessible, and value-for-money services. Through this, the regulator aims to ensure that the payment solutions available in the market meet individuals' and businesses' needs, demands, and preferences.
Additionally, since introducing its Strategy in 2022, the PSR has made considerable progress in positively changing the payment landscape, including safeguarding against APP fraud, developing Open Banking, and reviewing card fees. Despite this, as the payments sector is ever-evolving, the regulator intends to keep pace with new technological and market advancements.
The PSR’s strategy
The updates on its strategy underline the PSR’s extensive collaboration with stakeholders, trends in payments, the Government’s growth commitment, and the impact of the National Payments Vision (NPV). The regulator intends to centre its efforts on three main objectives within its remit for the remainder of the Strategy term, including:
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Finalise the work underway, aiming to safeguard consumers and support competition. The PSR is set to integrate its APP fraud reimbursement requirements, including commissioning an independent review, and provide the outcomes from its card market reviews. The regulator plans to collaborate with the FCA to allow it to take forward work on the overall framework for commercial Open Banking payments;
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Advance the work to advance the Faster Payments system, in partnership with the Bank of England, and reform Pay.UK. Also, the regulator aims to assess long-term retail infrastructure needs;
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Increasing competition and innovation in the payment system, assisting economic growth and creating an ecosystem that keeps up with industry trends. The PSR is set to further develop its innovation capability, focusing on mitigating excessive barriers to payment advancement.
The news comes just after the PSR
announced its intention to consult on whether to implement a cap on cross-border card fees when European consumers shop online from UK businesses. The move followed the PSR’s conclusion that UK business scaled their fees to extremely high levels, with the regulator intending to discuss introducing a cap on these cross-border card fees imposed on European consumers.
