Bank of England Seeks Input For Innovations In Payments
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The Bank of England has outlined its strategy for innovation in retail payments, focusing on direct bank-to-bank transfers. It pointed out the necessity for UK payment systems to be compatible with similar systems abroad. This was detailed in a recent discussion paper.
The Central Bank has issued its response to the changing ways payments and settlements will work in the future. It emphasized the need for innovations, as well as strong management and funding, as the two main goals it aims to achieve in retail payments.
New Technologies Is Set To Boost Demand For Direct Transfers
In the part of the paper discussing the main outcomes the bank explained that innovations over the last few decades have significantly altered how people handle money for making payments.
According to the Bank, new technological advancements will probably change this even more, including a higher demand for direct bank transfers when people make purchases.
The BoE has indicated that the UK’s retail payments network should provide access to different types of payments. It includes more choices beyond the current options like credit and debit cards. This allows people to make direct account-to-account payments to businesses at checkout for many different uses.
Token.io mentioned in a LinkedIn post that it was pleased with the Bank of England’s new discussion paper. The paper recognizes the potential of account-to-account payments to bring more choices and innovations to retail payments.
Token noted that account-to-account payments, often referred to as Pay by Bank, are important for having a diverse range of retail payment options.
Bank Of England Is set To Enhance Financial And Payment Sector
According to Andrew Bailey, Governor of the Bank of England, belief in the security of money and payments is vital to the bank’s responsibility for keeping monetary and financial stability. Bailey added that as innovation in the payment sector progresses, the Bank’s role must also adapt to support a strong and lively UK economy.
He mentioned that the bank can now explore new technologies in wholesale payments, encouraging more innovation in interbank retail payments. He also emphasized that achieving this will need input and close cooperation from the private sector.
The central bank also talked about the need for UK retail payment systems to work with those in other countries for cross-border payments. It said that having common standards, especially in messaging and dealing with legal and regulatory challenges, would make these transactions more efficient.
