PSR’s payments push for more indirect access
The UK’s Payment Systems Regulator (PSR) is pushing for more competition in the supply of indirect access to payment systems.
In its interim report “Market review into the supply of indirect access to payment systems”, the PSR says work to open up access is “generating increasingly positive results” but wants more.
It adds: “Although there are some specific concerns about choice, service quality and the ability of indirect PSPs [payment service providers] to switch providers, the PSR and the industry are making changes that we expect will address these issues.”
This market review is part of its wider programme of work aimed at helping more organisations obtain access to the UK’s payment systems.
It says access is “important” as banks, building societies, and other PSPs need to be able to move money between accounts to operate. To do this they need access to a payment system and PSPs can have either direct or indirect access.
The PSR says it is seeking stakeholders’ views on these findings by 5 May 2016.
The full report is here.
I love you, no… I love you, no… I love you more
Faster Payments has something to say on the interim report.
Craig Tillotson, CEO of Faster Payments, says it welcomes the analysis and findings of the PSR’s report and it is “particularly pleasing to note its recognition of the tangible progress made by the Faster Payments access programme over the past two years”.
The firm has engaged with more than 60 PSPs and nearly 40 fintech vendors.
Tillotson adds: “Several accredited aggregator vendors will be in place shortly, and are already competing to offer services to more than a dozen interested PSPs. Challenger banks are lined up to connect directly this year – including Raphael’s Bank and a variety of small and larger players, some still going through the process of gaining their banking licence.”
He says 2016 will represent a “step change” for PSPs looking to access the payment services “their customers demand”.