Payment Systems Regulator sets out decisions for reducing risks to the successful renewal of the UK’s interbank payments infrastructure

29/07/2021

NPA

The successful renewal of the UK’s interbank payments infrastructure will benefit people and businesses but risks to its successful delivery need to be reduced. 

The Payment Systems Regulator (PSR) has decided that Pay.UK should phase the development of the UK’s New Payments Architecture (NPA) by narrowing the scope of the NPA central infrastructure services (CIS) contract. Pay.UK must secure this contract through a competitive tender. The regulator is also consulting on the draft legal instruments it plans to give to implement its decisions. 

The NPA is the payment industry’s proposed way of organising the clearing and settlement of most interbank payments in the future, including those that currently use Bacs and Faster Payments. Interbank payments, payments made from one bank account to another, are essential to the day-to-day lives of millions and the functioning of the UK’s economy. 

Chris Hemsley, the PSR’s managing director, said: 

‘We want the UK’s interbank payment systems to serve the diverse and evolving needs of everyone who uses them for many years to come.  

The NPA is a great opportunity to meet growing demand for digital payments, bolster resilience and boost competition. It will help deliver improved services that benefit people and businesses throughout the UK, like better payment tracking and the ability to send more information with payments. 

‘The decisions we set out today will help lower risks to the delivery of the NPA by simplifying the