Emma RadmoreThe FCA has appointed David Geale as the permanent executive director for payments and digital finance, and managing director of the PSR (while it remains in place). He will also: be responsible for helping to deliver...
Category - Payment Services & Electronic Money
PSR publishes annual plan and budget
The PSR has published its annual plan and budget for 2025/26, highlighting its work in the coming year as it approaches consolidation with the FCA. In the meantime, the PSR retains its remit and powers pending...
Laura Wiles
Treasury publishes draft payment services framework contract termination regulations
HM Treasury has laid before Parliament draft regulations that will strengthen protections for payment service users where their provider has decided to terminate their account and withdraw the payment service. Under the...
Updated RTGS service goes live
The BoE’s updated RTGS service – RT2 – went live on 28 April 2025. RT2 is set to support the BoE’s strategic objectives for RTGS and CHAPS, and to drive innovation and competition in wholesale...
PSR explores changes in the payments landscape
The PSR has considered changes in the payments landscape from consumer, merchant and industry perspectives. For consumers, the PSR notes growth in digital payments and digital wallets technology. Cards remain the most...
PSR publishes summary of scheme and processing fees roundtables
The PSR has published a summary of discussion points at the stakeholder roundtables it conducted in July 2024 on scheme and processing fees. The discussion on remedies was split into four sections, each focusing on a...
API enters special administration
Blackthorn Finance Ltd, an authorised payment institution, has entered special administration. The FCA had imposed restrictions and an asset requirement on the firm in late 2023 and the firm had entered members...
FCA updates Regulatory Initiatives Grid
The updated Regulatory Initiatives Grid highlights many initiatives for various regulators relevant to the financial markets, including: during 2025: further action plan on FCA requirements in light of Consumer Duty...
PSR defers APP claims management system consultation
The PSR had planned to consult in April 2025 on adopting Reporting Standard B and whether to put in place regulatory requirements for Pay.UK’s reimbursement claims management system. Having considered stakeholder...
PSR appoints interim Head of Policy
The PSR has appointed Claire Simpson as interim Head of Policy. Ms Simpson previously led the PSR’s work on APP scams. Her appointment is effectively immediately, and she replaces Kate Fitzgerald, who leaves the...
ICO review of firms’ use of children’s data
The ICO has published a report of its findings of a review which took place over six months last year of over 40 participant financial services firms’ use of children’s’ data. Providers of products...
Stephen WilsonAPPG on Fair Banking publishes APP fraud report
The All Party Parliamentary Group (APPG) on Fair Banking has published a report on APP fraud, considering its scale and impact, and the effectiveness of associated regulation. The report concludes that while significant...
PSR consults on scheme and processing fees
Following the report it prepared into the scheme and processing fees charged by Visa and Mastercard, PSR has set out a number of proposed remedies on which it is consulting: requiring Mastercard and Visa to provide more...
Duncan ScottFSB announces establishment of Cross-Border Payments Data Forum
The FSB has announced the establishment of a Forum on Cross-Border Payments Data, as a result of its recommendations for cross-border data frameworks published in December 2024. The Forum will bring together experts in...
BoE speech on innovation in wholesale payments
The BoE’s Executive Director of Payments, Victoria Cleland, has given a speech at the Pay360 event highlighting the Bank’s recent efforts to further innovation in the wholesale payments field. In particular...
FCA publishes 5 year strategy
The FCA has launched its much-trailed 5 year strategy. It will focus on 4 priorities: being a smarter regulator; supporting sustained economic growth; helping consumers to navigate their financial lives; and fighting...
FCA consults on removing contactless limit
The FCA is asking for views on whether it would be a good thing to remove the contactless limit, and has published an “engagement paper” to seek views. The suggestion is all part of the work to support...
PSR updates on scam data publication plans
The PSR has outlined how it plans to publish APP scam data for 2024. Before the mandatory reimbursement requirement came into force in October, it published data annually. For the last cycle of 2024, it is planning to...
Government abolishes PSR
The Government has announced its intention to abolish the Payment Systems Regulator as part of its drive towards efficiency. It plans mainly to consolidate the PSR’s operations within the FCA. Rachel Reeves said...
PSR critiques card scheme and processing services market
The PSR has published the final report in its market review into card scheme and processing fees, concluding that the current market is not working well for card scheme and processing services. Key takeaways from the...
FATF consults on Recommendation 16
The FATF has published a second consultation on changes to Recommendation 16 on payment transparency and the related guidance and glossary terms. It needs to make the update to adapt the standard to changes in payment...
FCA publishes skilled persons data for Q2 / Q3 2024
In the quarter ending September 2024, the FCA commissioned 14 skilled persons reports: 6 reports related to consumer investments, 2 to insurance, 2 to wholesale markets (buy-side) and 4 to wholesale markets (sell-side);...
Wolfsberg Group publishes payment transparency guidance
The Wolfsberg Group has published guidance on roles and responsibilities in payment transparency. Its guidance looks at the roles of the various actors in the payment chain and their respective responsibilities, using a...
FCA and PSR report on use and impact of digital wallets
The FCA and PSR have published a report looking at the use and impact of digital wallets. Use of digital wallets is increasing rapidly, going from 8% in 2019 to 29% in 2023, and in 2023 around 20% of card users used a...
E-money firm goes into special administration
Nvayo Limited, an EMI, has entered special administration. The FCA had placed restrictions on the firm in 2023 because of AML compliance concerns, which meant the firm could not carry on any emoney services without the...
PSR reflects on next steps for APP scam reimbursement
The PSR’s head of policy, Kate Fitzgerald, has blogged on what the PSR plans now that the main APP scam reimbursement requirement is in full effect. Its key priority relates to Pay.UK’s reimbursement claims...
FCA sets out priorities for payments portfolio firms
The FCA has written a letter setting out its priorities for payments portfolio firms. Since its previous letter in March 2023, the regulator noted that it had seen improvements in governance arrangements, risk...
Treasury publishes more responses on strategy recommendations
HM Treasury has published responses from the Prudential Regulation Committee and Financial Policy Committee to its letters setting out recommendations. the Prudential Regulation Committee response notes what the PRA has...
FCA and PSR set out next steps for open banking
The FCA and the PSR have confirmed that Open Banking Limited will play a key role in setting up an independent central operator to coordinate how variable recurring payments are made in this next step in the development...
FCA highlights simplification as means of supporting growth
The FCA’s letter in response to the Prime Minister setting out how the FCA wants to collaborate with the Government to encourage growth highlights the work the FCA has already done in the wholesale markets to...
PSR publishes new strategy
The PSR has published its strategy for the next 2 years. It is now mid-way through a 5 year strategy, and has made strong progress in delivering positive change. It now needs to: complete work already underway...
Regulators review MoU on payments systems
The BoE, FCA, PRA, PSR have reviewed their MoU on payments systems in the UK, as they are required to do on an annual basis. The regulators noted that over the past year they have taken steps to improve the sharing of...
BoE speaks on future of RTGS service
Victoria Cleland, Executive Director of Payments at the BoE, has given a speech on the Future Roadmap for BoE’s Real Time Gross Settlement (RTGS) service, at FinTech Connect. The BoE published a discussion paper...
FCA updates perimeter report
The FCA has updated its Perimeter Report. The report highlights the FCA’s remit and powers, including the new Designated Activities Regime, and then lists the key areas of harm linked to the perimeter and some key...
BoE speaks on FX market lessons and settlement risk
Philippe Lintern, head of BoE’s foreign exchange division, has delivered a speech on lessons learnt from the history of the FX market, at FX Markets Europe. Lintern began by describing the success story of the...
FOS notes huge increase in complaints
The latest figures from the FOS show complaints have increased by over 50%, with record increases in complaints about frauds and scams, current accounts and credit cards. The FOS also noted in particular an increasing...
PSR publishes stakeholder submissions on card schemes and processing fees
The PSR has published the stakeholder submissions to its 2023 working paper on changes to card schemes and processing fees. Earlier this year, the PSR published its provisional findings on competition in the card...
FCA updates payments and e-money Approach Document on “reasonable grounds” for delaying payment
Following a consultation, the FCA has updated its payment services and e-money Approach Document to support amendments to the PSRs made in the Payment Services (Amendment) Regulations 2024. The provisions came into...
FCA reacts to Mansion House speech
The FCA has reacted to several announcements from the Mansion House speech. It has reiterated that it is committed to supporting growth and says it has fully embraced its secondary international competitiveness and...
Government publishes National Payments Vision
The National Payments Vision sets out the government’s ambitions for the UK payments sector. The government is keen to build on the UK’s position as a global leader in payments and is looking to strengthen...
CoP takes wider effect
From 31 October, the expanded roll out of Confirmation of Payee now means that 99% of all transactions made through Faster Payments and CHAPs are within scope, as the PSR’s SD17 took effect. The initial grouping...
PSR seeks industry views on card-acquiring remedies
The PSR is asking businesses for their thoughts on how the remedies put in place to make it easier to compare prices on card-acquiring services and to switch providers are working. It is seeking views on: how easy...
FCA updates regulatory initiatives grid
The FCA has published an interim update on its Regulatory Initiatives Grid. It had postponed the scheduled 8th edition because of the election and says that the replanning required as a result means that there...
Payment Delay Regulations to take effect on 30 October
Treasury has made the Payment Services (Amendment) Regulations 2024. They will take effect on 30 October and amend regulation 86 of the PSRs that requires PSPs to execute payment transactions within set timeframes. The...
FCA publishes payments Consumer Duty multi-firm review
The FCA has published the results of its multi-firm review into how 23 payments firms have implemented the Consumer Duty. It carried out its survey in January, and included firms from across the payments portfolio. It...
FCA sets clear expectations on APP fraud reimbursement
The FCA has wasted no time. On the day the new reimbursement requirement for APP frauds using FPS or CHAPS took effect (7 October), it has written two Dear CEO letters, one to banks and building societies and one to...
Regulators herald APP scam reimbursement requirement
The PSR and other regulators have welcomed the effective date of the APP scam reimbursement requirement, applicable to payments made over FPS and CHAPS between UK bank accounts. The PSR stressed that: over 99% of claims...
Government finalises payment delay regulations
The final draft of the Payment Services (Amendment) Regulations 2024 confirms that PSPs can delay the execution of certain payment orders where the PSP establishes reasonable grounds to suspect the order has been made...
PSR publishes policy statements confirming APP scams reimbursement limit
Following its recent announcement confirming that it is reducing the maximum level that PSPs will have to reimburse APP scam victims to £85,000 per claim, the PSR has published two policy statements setting out details...
UK Finance respond to FSB recommendations on cross-border payments services
UK Finance has responded to two consultations from the FSB, relating to the regulation and supervision of cross-border payment services providers (PSPs) and aligning cross-border payments and data frameworks. In the...
PSR confirms £85,000 reimbursement limit
The PSR has confirmed that the maximum reimbursement limit for APP scam victims will be £85,000 from 7 October. The BoE has followed suit in relation to CHAPS payments.
FCA consults on payments safeguarding reform
The FCA is consulting on radical changes to the safeguarding rules for payment and e-money firms, to bring the requirements within a CASS style regime and in the interim while this transition takes place strengthen the...
PSR updates powers and procedures guidance
The PSR has published an updated version of guidance that explains its role and ways of working and how it exercises its regulatory powers.
PSR confirms APP scam or civil dispute guidance
The PSR has confirmed its final guidance to help firms distinguish whether claims they receive from customers who have lost money are APP scams or more likely to be civil disputes. The guidance is aimed at helping firms...
UK Finance publishes UK Payment Markets review
The 2024 UK Payments Markets report shows: the continued popularity of debit cards and contactless; 85% of people use contactless as their regular payments method; one third of adults now use mobile wallets regularly...
UK Finance and LSB respond on proposed reduction to APP reimbursement cap
UK Finance and the LSB have responded to the PSR’s urgent consultation on lowering the maximum level of reimbursement for Faster Payments APP scams to £85,000, a significant reduction from the previously agreed...
FCA Practitioner Panel responds to call for information on digital wallets
The FCA Practitioner Panel has published its response to the PSR and FCA’s call for information on the benefits and risks of digital wallets. The Panel noted some “clear and compelling” benefits of...
FCA consults on “reasonable grounds” for delaying payments
The FCA is consulting on updating its guidance in its “approach” document for payment services and e-money firms to support proposed amendments to the PSRs that will allow PSPs to delay making payment...
PSR publishes Annual Report
The PSR annual report for 2023/24 unsurprisingly highlights the regulator’s activities in relation to APP fraud and open banking. It notes: publication of the first set of APP fraud statistics; steps to...
PSR confirms CHAPS APP reimbursement direction
Following consultation, the PSR has published a tracked and final version Specific Direction 21 which now applies to all PSPs participating in CHAPS that provide relevant accounts – which are defined as all...
PSR proposes reduction in APP reimbursement max
The PSR is consulting urgently on a proposal to lower the maximum level of reimbursement for Faster Payments APP scam claims to £85,000. This is a significant reduction, bringing it down from the previously agreed...
FOS highlights record fraud and scam complaints
We previously reported on the last quarter’s record complaints figures to the FOS. It has followed up this data with details of fraud and scam complaints, which are at their highest ever quarterly level. In the...
FCA publishes steps to improve access to bank accounts
In a report concerning its findings from follow-up work on payment account access and closures, the FCA has set out its expectations of firms, and next steps encouraging account providers to provide more support to...
PSR responds on VRP expansion
The PSR has followed up on its December call for views on how it could support expansion of Variable Recurring Payments to regulated financial and utilities services and to local and central government. Generally, there...
PSR publishes APP scams performance report
The PSR has published the APP scams performance report for 2023. Highlights from the report show: over 250,000 reports were made in 2023, with scams totalling over £340m; reimbursement rates have increased while fraud...
PSR publishes APP scams reimbursement information sheet
The PSR has published an information sheet to support firms’ compliance with Specific Direction 20 – the requirement for sending PSPs to inform consumers of their rights under the reimbursement requirement...
Harry WellsBank of England outlines approach to innovation in money and payments
The Bank of England (BoE) has issued a discussion paper inviting views on its approach to innovation in money and payments. In the paper, the BoE notes that to date it has: enhanced its capability to supply wholesale...
UK Finance says one third of UK adults use mobile contactless payments
UK Finance’s Payment Markets Report for 2023 shows an increase in payments of 5%, with 38% of all payments being contactless, and with one third of UK adults using mobile contactless payments at least once a month...
PSR finalises exemptions and extensions guidance
The PSR has finalised its guidance on how it makes decisions on whether to grant extensions and exemptions to specific directions or requirements. Among the things the PSR will consider when it receives a request are:...
PSR consults on draft guidance on identifying APP scams
The PSR is consulting on draft guidance on distinguishing between APP scams and civil disputes, after engagement with industry. The draft guidance aims to support Payment Service Providers (PSPs) with identifying...
FSB consults on data flows and regulation in cross-border payments
The FSB has launched a consultation on its recommendations regarding increased alignment in data flows and greater consistency in the regulation and supervision of bank and non-bank payment service providers (PSPs) with...
PSR and FCA call for information on big tech and digital wallets
The PSR and FCA are seeking information and evidence on the benefits and risks posed by digital wallets to people and businesses. In particular, the regulators want to gather information on: the different benefits that...
PSR confirms APP reimbursement requirements
The PSR has published its policy statement confirming the requirements for the mandatory APP scams reimbursement policy which takes effect on 7 October 2024. The PSR consulted in April on proposed reporting requirements...
FCA clarifies open banking expectations relating to run off firms
The FCA has updated its information page on firms in the Contractual Run Off scenario following Brexit. It has clarified that ASPSPs are not obliged to provide CRO firms with access to payment accounts given that CRO...
Chris Hemsley to leave PSR
Chris Hemsley is standing down as managing director of the PSR from 7 June to take up another position. David Geale will take over as interim managing director, having been director of retail banking at the FCA and...
PSR updates card-acquiring services directions
The PSR has updated its 2022 directions relating to card-acquiring services. The original directions were issued to the 14 most significant service providers. After consultation, the PSR has updated the list to be sure...
PSR writes to FPS participants on APP reimbursement
The PSR has written to Faster Payments System participants to set out areas of focus for implementing the mandatory APP scams reimbursement policy. In order to ensure effective and timely implementation by 7 October...
UK Finance annual fraud report 2024
UK Finance has published its annual fraud report for 2024 which sets out the amount of payment fraud and scams UK Finance members reported in 2023. Highlights include: criminals stole £1.17 billion through unauthorised...
PSR updates on preventing APP fraud
Chris Hemsley has written to Dame Harriett Baldwin MP (Chair of the House of Commons Treasury Committee) on the PSR’s progress on implementing measures to better protect consumers from APP scams. From 7 October...
PSR provisional finding on card schemes raises concerns
The PSR has published its provisional findings on competition in the cards schemes sector. It is concerned that the supply of scheme and processing activities is not working well and that there is no effective...
PSR consults on CHAPS APP scam reimbursement
The PSR is consulting on a proposed direction to require banks and payment firms participating in CHAPS to reimburse customers who have been the victim of APP scams. The direction will support the BoE’s...
PSR consults on cycle 2 APP scam publication guidance
The PSR is consulting on its draft guidance for PSPs for publishing APP scams data for cycle 2 (the calendar year 2023). The requirement to publish the data comes under Specific Direction 18 and applies to 14 PSP groups...
PSR consults on extension and exemption process
The PSR is consulting on how it plans to make decisions on exemptions or extensions to its directions and requirements. In principle these will be appropriate in only limited circumstances. When it receives a request...
PSR consults on supervisory approach
The PSR is seeking views on its approach to supervision. Last year, it set up a Supervision and Compliance Monitoring division, designed to deter and challenge any poor practices within firms. It plans for the division...
Banking and financial services included in key Smart Data sectors
The Department for Business and Trade has published the Smart Data Roadmap to outline the action it is planning to take in 2024 to 2025 using the provisions of the Data Protection and Digital Information Bill on Smart...
UK Finance to support VRPs for commercial applications
UK Finance has published a report which sets out recommendations for addressing the key issues and processes needed to develop VRPs for commercial applications and containing a set of model contractual terms.
PSD3 nears final agreement
The European Parliament has voted through proposed changes to the Payment Services Regulation and Directive by a large majority. Key changes include: free verification of identifiers and requirements on PSPs to ensure...
JROC seeks input on design of future entity for open banking
Further to its April 2023 recommendations for the next phase of open banking in the UK, the Joint Regulatory Oversight Committee has published its proposals for the design of the future entity for open banking, which...
PSR consults on APP reimbursement compliance and monitoring
The PSR has published a consultation paper seeking views on proposed reporting requirements for PSPs that are in scope of the new reimbursement requirement, so that the PSPs will report data to allow the regulator...
BoE updates on ISO 20022
Following the successful migration of the CHAPS system to the ISO 20022 payments messaging standard in June 2023, BoE has published a policy statement providing further clarity on the mandatory requirements for ISO...
PSR publishes Annual Plan
The PSR has published its Annual Plan and Budget for 2024/25, highlighting the year as a key period for consolidating the delivery of its work to improve payment services for businesses and consumers in the UK. One...
FCA updates perimeter report
The FCA has updated its Perimeter Report on its website. It was last updated in March 2023. Among the issues discussed are: FCA’s general approach to the perimeter; when it will take action against unauthorised...
PSR calls for evidence on LINK requirements
The PSR has published a call for views on its second annual review of Specific Direction 12, which is aimed at ensuring that LINK keeps a good geographical spread of free-to-use cash machines, and has appropriate and...
Government sets out third phase of Smarter Regulatory Framework
Following its Smarter Regulatory Framework (SRF) delivery plan, Treasury has published a follow-up paper which sets out the progress made so far and the government’s approach to the next phase of the SRF programme...
PSR speaks on the future
Chris Hemsley, speaking at the Pay360 conference, looked at how far payments innovation has come this century, and spoke of some challenges for the future. He focused on: the important role of a Payment System Operator...
Treasury publishes payment contract termination changes
Treasury has published the near final version of the amendments to the PSRs that will require payment services providers to give customers at least 90 days’ notice of termination of framework payment services...
Treasury releases draft laws on payment delays
The Treasury has published the Payment Services (Amendment) Regulations 2024, which will allow payment services providers to delay payment processing where there are reasonable grounds to suspect fraud or dishonesty...
Treasury announces National Payments Vision
Following the publication of the Future of Payments Review, Treasury has accepted the recommendation to publish a National Payments Vision. The Vision will constitute the government’s full response to the Future...
ECJ rules on whether funds retained in a payment account constitute e-money
The European Court of Justice has ruled that for the purposes of the Payments Services Directives and the E-money Directive the activity of a payment institution which consists of the receiving of funds from a user of a...
FATF consults on payments transparency recommendations
The Financial Action Taskforce (FATF) has published a consultation, and explanatory memorandum, on proposed changes to its recommendation 16 (the Recommendation) and the associated interpretive note and glossary terms. ...
FCA issues supervisory notice under PSRs
FCA has published a First Supervisory Notice against an API (EPayPro), setting out its decision to very the firm’s authorisation so as to restrict it from charging a “compliance” or any other fee that...
FCA improves service metrics
FCA’s latest set of authorisations metrics, covering the quarter to December 2023, shows 9 green metrics, 6 amber and no red. It determined 97.8% of applications overall within the statutory deadlines. No areas...
Pay.uk responds on VRP expansion
Pay.uk has responded to PSR’s proposal to expand variable recurring payments. In principle, it supports a multilateral agreement as the best way to deal with expansion, and says it has the appropriate expertise to...