(5 May 2017 – Europe) Britain's system for processing payments and cheques will be streamlined under plans to help newcomers compete more easily with long established banks and improve services to customers.
A group created by the Payment Systems Regulator (PSR) and Bank of England recommended that the three retail payment systems, Bacs, Cheque and Credit Clearing Company, and Faster Payments Scheme be consolidated under a single umbrella.
The change would mean new market entrants will only have to make one application to use all the three systems, thereby speeding up the process and cutting costs.
“The consolidation would be an important first step towards a generational change in UK payments,” PSR Managing Director, Hannah Nixon, said in a statement.
“Consumers will also benefit from new entrants coming into the market and offering users of payment services new, innovative products.”
Although only a recommendation, the PSR has powers to force through changes.
“We welcome the report, and look forward to seeing its recommendations taken forward in a way which promotes an orderly and smooth transition,” said David Bailey, the Bank's director for financial market infrastructure.
It is expected that the consolidation will be substantially completed by the end of 2017, the PSR said.
“While good progress has been made, support from across the industry is vital and significant collaborative work still needs to be done if the plan is to be delivered successfully and the benefits of the consolidation unlocked,” said Robert Stansbury, who chairs the joint BoE, regulator, delivery group.