Chris Hemsley - PayExpo Payments Leaders' Summit on regulation of Open Banking, payment competition and fraud in interbank payments - 5 October 2021


Speech PayExpo Chris Hemsley

This is the text of the keynote address as drafted and may differ from the delivered version. This keynote was delivered by our Managing Director, Chris Hemsley at the PayExpo Payments Leaders’ Summit, providing thoughts on Open Banking, payment competition and fraud in interbank payments. 

Good morning, I’m Chris Hemsley, the Managing Director of the Payment Systems Regulator, and I’d like to talk to you about burgers, hotdogs and innovation in payments - three things you’ve probably not heard mentioned in one sentence before.

Bear with me…

When not regulating payments, I help to organise a fundraising barbeque for my local, community rugby club. While reasonably successful in the past, our parents increasingly expect to be able to pay with a card or mobile phone. We had hotdogs; they had money; but we needed a simpler means of exchange.

So we took the plunge into the world of digital payments. As the person voted to know most about payments (which was a relief!) I headed down to Argos and secured a payment terminal. The registration took a few minutes; the checks maybe an hour; and by 6pm that day, we had parents happily tapping mobile phones for burgers and hotdogs. The next working day our takings were transferred to us.

The sales reports, analytics and an ability to set up an online presence were too much for our volunteer sales team. But obviously valuable for more serious small traders.

New technology, innovation, competition and new entry working to bring new products to market. And behind them, reliable and secure payments being initiated, in ways that worked for a community fund raiser.

And an experience that would have been inconceivable only a few years ago.

Why do I raise this? Because a lot is going well in payments – and it is worth reflecting on it.

My own experience highlights the impact that innovation, commercial incentives and competition can have on real-world outcomes.  A theme that I will return to, as I now turn to the ‘to do’ list of issues that the PSR is grappling with – picking out two particular themes: competition and protecting people from fraud.

We recently set out our proposed strategy. And in it we highlight a particular risk that we see in payments – on competition.

In retail, we have historically relied on cash, cheques and card payments for our shopping. But the future of retail payments is increasingly about digital debit payme