PSR has launched a consultation on the delivery and regulation of the New Payments Architecture (NPA) which is set to replace the UK’s current Faster Payments and Bacs retail interbank payment system. PSR says there are unacceptably high risks that the NPA, run by Pay.UK, will:
- not provide value for money;
- stifle competition and innovation in payment services; and
- delay realisation of the benefits of the NPA.
PSR is seeking views on its proposals for managing these risks, including:
Specific mitigations to ensure that:
- UK procures effectively;
- central infrastructure services (CIS) user prices are set using proportionate, objective and non-discriminatory (POND) criteria ; and
- there are contractual provisions in place that guarantee minimum levels of service quality, place restrictions on information and data sharing, and promote and facilitate innovation.
Governance principles to ensure that:
- UK is the primary interface and decision-maker for all matters relating to CIS provision;
- UK actively implements rules to promote competition and ensure access terms are POND; and
- if a CIS provider (or its owner) has a significant interest in another payment system that competes with interbank payments or in the NPA’s competitive overlay markets, its CIS functions are operationally separate.
The deadline for comments on questions 1-6 is 19 March and for questions 7-14 is 5 May 2021.