Pay.UK has issued its response to the UK government’s National Payment Vision which was published on 14 November 2024. The two main foundations of the Vision are resilient infrastructure and a clear regulatory framework. It also includes three key pillars: innovation, competition, and security.

Pay.UK says that these pillars mirror its own purpose to power payments, champion innovation and give the UK choice in how it pays. Pay.UK processes over £10 trillion annually, and aims to provide robust payment systems.

Pay.UK says that its independence helps to give it a unique position.  It aims to deliver change to benefit end users in an increasingly broad and complex payments ecosystem, where banks, building societies and other payment providers have different perspectives and commercial interests. Pay.UK says that reform is vital to ensure that it can perform its role more effectively, supporting innovation and competition in the ecosystem and delivering change, alongside ensuring the resilience of its day-to-day operations. 

The National Payments Vision is aligned to Pay.UK’s strategic asks that:

  • the Vision is rooted in end-user outcomes; 
  • it provides strategic direction through clear roles and responsibilities; and 
  • it sets out the priorities for interbank payments. 

It says that it has a significant role to play in maintaining financial stability and driving growth, and the UK government’s ambition for the future of payments.

Delivering benefits to end users – central infrastructure renewal and Pay.UK’s technology strategy 

There is industry consensus that central infrastructure renewal is required. Its technology strategy envisages a modular and phased delivery of a central infrastructure platform that will support easier integration of new products and services as required, including the potential for cross-border, central bank digital currency, and a significant proportion of the capability of a regulated liability network. It also aims to be futureproof. 

A shared strategic direction 

The industry needs to work together to make sure that interbank payments drive innovation and competition on a platform with financial stability as its cornerstone. Pay.UK will focus on collaboration on the design and delivery of next generation infrastructure, including establishing an industry delivery body. 

Priorities for interbank payments 

Pay.UK sets out three priorities for the next phase of innovation and development in interbank payments:

  • Unlocking infrastructure renewal;
  • Dealing with fraud – a key detriment that has the potential to affect overall confidence in the UK’s payment systems; and
  • Interbank transactions in retail – although card payments work well, providing choice in the way people and businesses can pay and be paid is essential. Pay.UK wants the industry and the authorities to prioritise the conditions for interbank transactions to thrive in retail, with an appropriate commercial model and consumer protections.

Pay.UK’s role is to provide resilient and relevant payment systems, that can adapt to the needs of the ecosystem and end users, driving innovation and competition. Its focus is now on working with the industry, regulatory bodies and the UK government to deliver significant enhancements to the central infrastructure to enable the outcomes of the National Payments Vision.