National Payments Vision Introduced To Streamline Regulations In The UK
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The UK Government has shared its National Payments Vision (NPV), promising to simplify the rules in the payments sector and build a leading payment system.
The NPV, created over the past year, examines the results of the 2023 Future of Payments Review. It shares the government’s goals for expanding the payments system using new technology to help the economy grow.
The NPV Plans To Simplify And Improve Regulatory Processes
Tulip Siddiq, the economic secretary to the Treasury, said the NPV shows the government’s plans to create a trusted and advanced payment system. She explained that the goal is to give people and businesses many ways to pay that meet their needs.
To guide the next steps, a Payments Vision Delivery Committee will be set up. It will work with a group of sector representatives to make progress.
The NPV also plans to create simpler, fairer rules by improving how regulators work together. To support this, the government has written a joint letter to the Financial Conduct Authority (FCA) and Payment Systems Regulator (PSR). This letter explains their duties and aligns their work with the NPV’s goals.
Siddiq said this plan will fix the “regulatory congestion” in the sector. The FCA noted that the changes will make roles and rules clearer. The regulator will work closely with the PSR, the Bank of England, and the government to achieve the shared vision.
The UK is also working on a New Payments Architecture program. This will replace the current Faster Payments and Bacs systems with a single, modern system. However, the NPV said progress has been slow and difficult.
To speed things up, the government is forming the Payments Vision Delivery Committee. This group, led by the Bank of England and PSR, will review needed upgrades, long-term goals, funding, and reforms for Pay.UK.
The FCA Will Oversee Open Banking To Ensure Safety And Progress
A Pay.UK spokesperson said the new group is a step toward better teamwork and clearer plans. The spokesperson added that success needs clear roles and responsibilities and Pay.UK is ready to help build a modern and reliable payment system.
The NPV also focuses on open banking, which helps account-to-account payments. To improve this, the FCA will take charge of regulating open banking. This change will help speed up progress and ensure safety for users.
The PSR also plans to review the rules on refunding push payment fraud after a year. At the same time, the government said technology and telecom companies play a key role in stopping fraud. The government will explore the idea of a digital pound. Any decision to roll it out will only happen after passing new laws.
Tony Craddock, director general of The Payments Association, praised the plan. He said it gives clear direction and addresses both strengths and weaknesses. He called it a creative but practical plan to build a trusted payment system where people and businesses have many choices.
