Global: Bank of England Unveils Framework to Deliver UK’s National Payments Vision

The Bank of England (BoE) has outlined a new delivery model for modernising the UK’s retail payments infrastructure, aligning with the government’s National Payments Vision (NPV) published in November 2024. The NPV aims to resolve regulatory complexity and drive the development of a cutting-edge payments ecosystem that fuels economic growth.

At the heart of the strategy is the New Payments Architecture (NPA) programme, a major upgrade that will replace the existing Faster Payments and Bacs systems. Under the NPA, interbank retail payments will be cleared and settled via a purpose-built central infrastructure designed for resilience, scalability, and innovation.

Despite broad consensus on the need for reform, the NPV acknowledges that progress on infrastructure upgrades has been “slow and challenging.” In response, the government established a Payments Vision Delivery Committee, chaired by HM Treasury and including the BoE, the Financial Conduct Authority (FCA), and the Payment Systems Regulator (PSR), to steer implementation.

A New Governance Model

As part of its latest update, the committee has proposed a multi-tiered model to deliver the next generation of UK retail payments:

• A Retail Payments Infrastructure Board, chaired by the BoE, will guide strategic direction and provide oversight. This reflects the central bank’s responsibility as operator of the Real-Time Gross Settlement (RTGS) system and its broader experience with infrastructure renewal.

• The board will include representatives from the broader payment ecosystem, a member from Pay.UK, and a representative from a newly established Delivery Company.

• The Delivery Company will take on responsibility for procuring, funding, and overseeing the design and implementation of the new infrastructure. It will ensure that the right expertise is applied at each stage of development and maintain coordination with Pay.UK.

While the Delivery Company will spearhead the NPA rollout, the BoE clarified that Pay.UK—the current operator of the UK’s interbank payment systems including Faster Payments, Bacs, and Direct Debit—will continue in its existing operational role, working in close collaboration with the Delivery Company throughout the transition.

Roadmap and Industry Engagement

The Payments Vision Delivery Committee will publish a formal strategy this autumn, followed by a Payments Forward Plan by year-end. This plan will outline a detailed, sequenced roadmap across the entire payments ecosystem, addressing both retail and wholesale payments, and exploring the evolving role of digital assets.

A spokesperson for Mastercard welcomed the developments, saying:

“These measures are designed to re-establish the UK’s position as a world leader in Account-to-Account payments. We support the introduction of the industry-led Delivery Company, which aligns with recommendations from the Garnier review, and endorse the enhanced role of the Bank of England in guiding modernisation.”

With this new structure, the UK is positioning itself to deliver a more robust, interoperable, and forward-looking payments infrastructure that meets the demands of a fast-evolving financial landscape.