Bacs, FPS and C&CCC to be consolidated by end of the year, expected benefits include enhanced capability and capacity and creation of Image Clearing System for cheques.

The Payment System Operator Delivery Group (PSODG) published a report yesterday setting out a recommended delivery plan for the consolidation of the operators of three payment systems: Bacs Payment Schemes, Cheque and Credit Clearing Company (C&CCC) and the Faster Payments Scheme.

In a joint statement, the Payment Systems Regulator (PSR) and the Bank of England set out what they expect to be the benefits of the consolidation:

• further developing the capability and capacity of the operator of Bacs, FPS and the new Image Clearing System for cheques;
• supporting the further simplification of the access and governance of the payment systems as well as their overall resilience and robustness;
• in the medium term, facilitating the safe and secure transition to, and management of, another of the Forum’s proposals: a New Payments Architecture (NPA). We expect the NPA to deliver more dynamic competition and innovation in payments and be underpinned by best-in-class risk management.

The PSODG is now asking the boards of the three payment system operators to review and endorse the consolidation plan, so that consolidation can be substantially completed by the end of 2017.

Robert Stansbury, independent chair of the PSODG, said: “We have made significant headway towards redefining the way in which the three PSOs will operate in the future. A single consolidated PSO would simplify access to, and the governance of, payment systems, helping to drive innovation and competition across the UK industry.”