In the current system non-bank PSPs have to use the banks to offer their products, limiting the opportunities for non-bank PSPs to provide competitive services. Direct access for these PSPs will lead to further competition and innovation improvements in the payment systems and the products that end-users can expect to receive.
In response to the announcement Hannah Nixon, Managing Director of the Payment Systems Regulator, says:
“This is a welcome move by the Bank of England and something we have been encouraging since the introduction of the PSR. Allowing PSPs to have their own settlement accounts will lead to fairer and more open access, which will help increase competition in payments.
“Fundamentally, this will ensure that UK payment systems keep pace with the changing structure of the financial system.”