Global: UK’s Payment Systems Regulator Unveils Updated Strategy

The UK’s Payment Systems Regulator (PSR) has released an updated strategy marking the midpoint of its five-year strategic plan, highlighting its key commitments and progress to date. Originally launched in 2022, the plan aimed to protect users and foster competition within the payment systems sector.

Now, three years into its implementation, the PSR has outlined its achievements, including introducing protections against Authorised Push Payment (APP) fraud, advancing Open Banking initiatives, and conducting a review of card fees. These updates follow consultations with stakeholders and align with the Government’s growth objectives and the National Payments Vision.

The updated strategy focuses on three core commitments for the remaining two years:

1. Completing Ongoing Work: Finalize efforts to protect users while promoting competition and innovation in payment systems.
2. Upgrading Faster Payments and Reforming Pay.UK: Collaborate with the Bank of England to enhance the Faster Payments system, reform Pay.UK, and evaluate the long-term infrastructure needs for retail payments.
3. Enhancing Competition and Innovation: Sharpen focus on fostering competition and innovation in payment systems to drive economic growth and support the development of future payment ecosystems.

David Geale, Managing Director of the PSR, commented on the progress made: “We’ve made great progress—especially in protecting consumers through our world-leading approach to APP fraud. But we know there’s more to do. By taking ambitious but realistic action, we can ensure payment systems remain competitive and innovative, delivering real benefits for users and supporting economic growth.”

As the PSR advances these commitments, it aims to ensure the UK’s payment systems remain resilient, inclusive, and supportive of economic and technological growth.