The operational responsibility for two of the UK's payment systems, Bacs and Faster Payments, has been transferred to the New Payment System Operator (NPSO). This move is to ensure the continuity of operations. Bacs and Faster Payments, which process a combined £6.3 trillion worth of payments annually, are now subsidiary companies of the NPSO. Users of the two systems are not required to do anything and payments will be processed as usual.
The UK's cheque processing system is also due to join the NPSO in the coming months, along with UK Payments Administration Limited (UKPA).
Bringing the retail payment systems together is a key step in establishing a single voice for retail payments in the NPSO and will enable a vibrant economy, reduce complexity and risk and provide a platform for future competition and innovation, according to the Payments Systems Regulator (PSR).
The NPSO's Paul Horlock said: “This is our opportunity to create the future of retail payments in the UK, driving value for people and businesses and enabling a vibrant UK economy. We will be the leading payments authority that will create a best in class payment infrastructure and standards in the UK for the benefit of people everywhere.”
The NPSO was set up in 2017 following the report from the Payment System Operator Delivery Group, an independently chaired body set up by the Payment Systems Regulator (PSR) and the Bank of England.
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