ANALYSIS: A new consolidated payments infrastructure for the UK
is set to come into existence, with the Competition and Markets
Authority (CMA) due to approve the plans later this month.
This is welcome news for payment system participants frustrated
by dealing with multiple sets of creaking payments infrastructure.
A single set of rails for processing a variety of payments will no
doubt simplify processes for payment providers and end users in the
long term, and better accommodate a changing payments
landscape.
The planned new payment system operator (NPSO) will take over
the functions of the three retail payment system operators (PSOs):
Bacs Payment Schemes Limited (Bacs), Cheque and Credit Clearing
Company Ltd and Faster Payments Scheme Ltd (FPS). This
consolidation follows the recommendations of a cross-industry
group, tasked by the Payment Systems Regulator (PSR) with producing
a strategy to help "unlock competition and innovation in
payments".
