The Payment Systems Regulator (PSR) has issued a ‘call for input’ on the competition issues that could arise in the UK’s New Payments Architecture (NPA).

The PSR described the NPA as the UK payments industry’s proposed new method of organising the clearing and settlement of payments between banks – known as interbank payments.

The regulator called the NPA a ‘once in a generation’ change to the fabric of the UK’s interbank payment systems, and suggested it will facilitate the development of services that make transactions safer, as well as give everyone more control over who, when and how they pay.

The PSR revealed it wants to see the NPA delivered in a way that ‘drives innovation’ in payment systems, while benefitting the people and businesses who use them. The regulator suggested it could be done by boosting competition between existing and new payments services, as well as enhancing resilience and security in payments.

The regulator has invited all interested parties to respond to a ‘call for input,’ which according to the PSR, is seeking feedback on the likelihood of competition issues materialising in the NPA, and how harmful or significant they could prove to be.

The overall aim, the regulator said, is to provide greater clarity and more detail on the PSR’s expectations, concerns and regulatory approach.

PSR managing director, Chris Hemsley, commented: “The renewal of the UK’s interbank payments infrastructure, through the NPA, has the potential to deliver innovative new services and products for businesses and consumers.

“Today’s publication supports that process, by inviting views on what might prevent the benefits that competition can bring, and the steps that all parties – including the PSR – can take to ensure that people and businesses feel the full benefits of this important investment in our payments infrastructure.”

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