The Payments Strategy Forum (PSF), created in March 2015 to develop a strategy for payment systems in the United Kingdom, has published a draft strategy setting out simpler access, greater innovation, increased adaptability and better security for the UK's payments system.

Increase access to UK payments system

The PSF's report states that the strategy would “build on the work already underway to help to simplify and open up access to new entrants to the existing payment systems.... [and] support the ongoing work on sort code and settlement account accessibility; the development of aggregator models and establishing of common participation models and rules.”

The strategy would also consolidate “the interbank system governance of Bacs, Cheque & Credit Clearing Company and Faster Payments (FPS) into one new entity”. The PSF writes that this “would act as the springboard for the new payments architecture emerging in the future”.

APIs and ISO 20022

It also proposes the universal adoption of internationally recognised messaging standards ISO 20022 and the development of common governance for the APIs that act as the glue holding together the payments architecture and would provide the ability to send more data with payments.

Reliability and security can't be compromised

“One thing is very clear – the proposed initiatives will need to be reviewed against the long list of regulatory requirements the industry is already committed to deliver. Any changes must be delivered in the right order and in the right way without compromising the reliability and security of the payment systems that continue to serve us all so well,” said Maurice Cleaves, chief executive of Payments UK.

Strategy to make 'real difference' to payments industry

The PSF was set up by the Payments System's Regulator (PSR) and Hannah Nixon, managing director of the PSR said: “The Forum has come up with some strong ideas that have the potential to make a real difference in the payments industry and it will be interesting to see how the wider industry responds to them during this consultation period.”

The draft strategy is available online.