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Overhaul of UK payment systems
UK payments systems are due to see their biggest change in a generation according to the Payment Systems Regulator
The Payments System Regulator (PSR) has released its new strategy for the payments industry, which it described as giving ‘people greater control over how people manage their day-to-day finances’ and promising ‘greater protection and security for consumers and businesses by helping to stamp out financial crime’.
Among the new initiatives which have been announced is ‘confirmation of payee’ and ‘request to pay’.
Confirmation of Payee aims to stop people sending payments to the wrong account, either by accident or due to fraud. The sender will receive a confirmation with the recipient’s name on before any funds leave their account.
Request to Pay will aim to help spenders manage their money by asking customers to authorise a regular payment such as an electric bill, before the company withdraws the money.
Last year UK payment systems processed around 700 transactions every second, totalling £75 trillion.
The Payment Strategy Forum is a body of experts set up by the PSR whose members include consumer groups, fintechs and UK banks. They have collaborated on a Final Strategy for overhauling the current payment systems with the interests of those that use payments service in mind.
Hannah Nixon, Managing Director of the Payment Systems Regulator, said:
‘When you put it all together the bigger picture is a UK payments industry that is vastly different to the one we saw when the PSR went live in April 2015. The work we are undertaking today will better serve consumers, businesses and the wider UK economy to ensure that the UK payments industry continues to be recognised as one of the most advanced and resilient in the world.’