UK’s New Payment Systems To Be Delivered By Year’s End

The Payment Systems Regulator (PSR) and Bank of England (BoE) announced Wednesday (Sept. 13) that the Payment System Operator Delivery Group (PSODG) has completed the necessary steps to meet a mandate handed down by regulators.

According to a press release, the appointment of Melanie Johnson as its first chair has seen continuing work to deliver the New Payment Systems Operator (NPSO) by the end of 2017. The NPSO is now taking the lead, and the PSR and the BoE have confirmed the closure of the PSODG, the companies said.

“The creation of the NPSO is an important step in streamlining the U.K.’s payment systems and creating an environment that delivers competition and innovation for the benefit of everyone,” said Hannah Nixon, managing director of the PSR in the press release. “The delivery group has put in place a framework that will allow for the completion of the PSO consolidation by the end of the year, in line with our ambitious timetable. I would like to thank Robert Stansbury and the members of the group for their hard work and commitment.”

The two companies noted in the release they had established the PSODG with the aim of planning for the consolidation of the operators of three payment systems: Bacs Payment Schemes Ltd (BPSL), Cheque and Credit Clearing Company (C&CCC) and the Faster Payments Scheme Ltd (FPSL). With Johnson’s appointment, the process of creating the initial board has begun.

“I want to thank the members of the PSODG whose collective efforts have ensured the timely delivery of the group’s mandate,” said David Bailey, director of financial market infrastructure at the Bank of England. “It has been an excellent example of a range of industry stakeholders working together to help deliver an outcome that should enhance the stability of the U.K.’s financial system. The Bank and PSR will continue to closely [to] monitor the progress of the consolidation and expect good headway to be made towards completing the transaction over the next few months.”