HM Treasury - Open Consultation - A Streamlined Approach To UK Payment Systems Regulation Consultation

In March 2025, the government announced that it will consolidate the Payment Systems Regulator (PSR) primarily within the Financial Conduct Authority (FCA) as part of the Regulatory Action Plan. The government committed to consult on the details of how this would be achieved and to legislate for this change as soon as Parliamentary time allows.

This consultation paper sets out proposals for integrating the functions of the PSR entirely within the FCA. This will see the FCA take on the PSR’s responsibilities, including for promoting competition and innovation in payment systems and the services provided by payment systems, as well as supporting the interests of consumers and businesses.

The proposed consolidation seeks to deliver a more streamlined regulatory environment for payment systems by reducing the number of regulatory bodies, simplifying the regulatory landscape for firms and stakeholders. This marks a further step being taken by government to deliver its vision for a trusted and world-leading payments ecosystem.