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The Payment Systems Regulator (PSR) has today spoken of its intention to foster a culture of innovation and competition that will help the UK to become a world-leader in the development of payments systems.
Speaking at Money2020 Europe, one of the largest fintech conferences in the world, the Managing Director of the PSR, Hannah Nixon, told delegates that the regulator was keen to help Britain become the envy of the world in the field of payments. She told the conference that the PSR wants to facilitate the creation of an accessible technological hub in the UK that would allow more companies to enter the market and that would ultimately give consumers more choice in their personal banking.
Hannah Nixon, Managing Director of the PSR, said:
“We want the UK to lead the world in the development of payment systems. We want to encourage technological innovation. Not for innovation’s sake, but to drive improvements for users, helping payment companies find new and ever more convenient ways for people to pay.
“We want competition that gives more businesses a chance to enter the market, so payments aren’t a barrier to entry for new retail banks, and so that customers get more choice”.
Nixon went on to describe key areas in which the PSR is working to achieve these goals, alluding to the recent publications on access and the UK payments infrastructure.
Referring to the regulators first year in operation as a ‘tale of two market reviews’, Nixon explained how the PSR’s approach was to be balanced and proportional, being able to adopt either a carrot or a stick approach in order to achieve its goals.
Hannah Nixon, continued:
“We don’t want an industry that waits to be told what to do. Nor do we want to see a blind compliance culture. We want an industry that is invested in change; that innovates because it sees the advantage in doing so.
“Twelve months ago I was clear that we would need to show our teeth from time to time. But this was never going to be the only tool in our kit. Regulation doesn’t always have to be interventionist.
“The best regulation is the kind the industry is invested in, and wants to drive forward. Part of being a good regulator is about creating the right culture, the right environment, the right incentives, so that industry rises to the challenge.
“The sector has upped its game and I believe that by continuing this twin approach we can help create the kind of industry we want to see.”
To read the full speech, visit the PSR website here.
Background
- The PSR was incorporated on 1 April 2014 and became fully operational on 1 April 2015.
- The PSR is the regulator and concurrent competition authority for payment systems in the UK and all participants in payment systems (payment service providers, operators and infrastructure providers to those payment systems).
- The PSR has three statutory objectives: to promote effective competition in the markets for payment systems and for services provided by those systems, including between operators, payment service providers and also infrastructure providers, in the interest of service-users; to promote the development of innovation in payment systems, in particular the infrastructure used to operate payment systems, in the interest of service-users; and to ensure that payment systems are operated and developed in a way that considers and promotes the interests of service-users.
- The PSR website.
