The Payment Systems Regulator (PSR) has published its key aims, activities and budget for the next year.
Payments are the most widely used financial service in the UK – from people using card or cash to pay for groceries or transport, to making account-to-account payments to donate to charity or settle their taxes. The PSR regulates billions of payments made each year and has the critical role of ensuring the systems that underpin them work well for everyone.
As the regulator continues to focus on its strategic priorities of protection, competition, unlocking account-to-account payments and providing access and choice, it has set an ambitious work programme for 2023/24. The PSR will continue building on the significant pieces of work it already has underway, including securing better consumer protections against authorised push payment (APP) scams, as well as examining card fees to ensure businesses and consumers are getting a good deal on card payments.
With over 7 million active open banking users in the UK, the PSR is playing a leading role in making sure the full potential of open banking is realised, particularly through its work as co-chair of the Joint Regulatory Oversight Committee. This will bring opportunities for new services and allow more convenient and efficient ways to pay.
As the sector develops, the PSR wants to make sure that payment systems are safe, reliable and fit for the future. This means shaping the delivery of the UK’s New Payments Architecture (NPA) by Pay.UK, which aims to meet growing demand for digital payments and support increased competition and innovation.
It also means making sure the PSR’s regulation of payment systems can adapt as new technologies and business models emerge, including those based on cryptoassets for example.
To deliver this work successfully, in 2023/24 the PSR will evolve its approach so it can be quick to respond to, and influence, emerging trends in payments. The PSR will also boost its effectiveness by broadening its engagement with stakeholders and building a new team to increase its focus on reducing firms’ non-compliance with the rules the PSR enforces.
Chris Hemsley, Managing Director at the PSR, said:
“We’re now into the second year of our five-year Strategy and covering larger and more complex pieces of work than ever before. We’re driving forward a package of measures to tackle APP scams, significantly stepping up the level of protection, transparency and support people will get. We’re also working to inject more competition into payments by unlocking the potential of open banking.
“As we take further steps to improve outcomes for people and businesses across the UK, we’re evolving our approach to help us have the biggest impact where it matters most. We’ll be engaging even more with our stakeholders, enhancing our compliance and supervision work, and making sure we have the right resources to react swiftly to new issues.”
- To accompany the full Annual Plan and Budget published today, the PSR has created a handy factsheet summarising its key projects, along with a short introductory animation which will be shared on its social media channels: PSR LinkedIn and Twitter.
- On 9 May 2023, the PSR is holding an event to hear from stakeholders about the plan and discuss it in more detail. This will also include a media session – more information on this will be provided soon.
- In the summer, the regulator will publish its annual report on how it has performed against its 2022/23 Annual Plan.