The UK’s Payment Systems Regulator (PSR) has outlined its plans for the New Payments Architecture (NPA) program, aiming to enhance interbank payments and consolidate existing systems for processing payments.
Facts
- The NPA is a proposal for the UK’s payments industry to improve interbank payments, including clearing and settlement of payments between accounts, by consolidating systems like Bacs, Faster Payments, and Cheque and Credit Clearing.
- Pay.UK, which operates these systems, was selected by the PSR and the Bank of England in 2019 to design and deliver the NPA and its central infrastructure services (CIS) procurement process.
- The PSR has been closely monitoring Pay.UK’s progress and set its regulatory framework to address risks related to competition and innovation with the NPA’s CIS.
- The PSR approved two procurement requests from Pay.UK to facilitate PSPs’ migration to the NPA from the Faster Payments system and for a CIS provider.
- The PSR plans to review Pay.UK’s design, funding model, and business case, as well as review the CIS contract, while ensuring compliance statements align with the NPA’s regulatory framework.
- The NPA aims to promote innovation, competition, resilience in payment services, and reduce fraud by allowing more data in payment messages.
