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In October 2014, the government launched a consultation on the designation of payment systems for the Payment Systems Regulator (PSR). Following this, the government announced at Autumn Statement 2014 that it intends to designate eight systems, and stated that it would gather more evidence to assess a further three systems.
This document summarises the main issues raised by respondents under the consultation questions and outlines the government’s response to these. It reiterates the government’s intention to designate the original eight systems, and outlines why the government has decided not to designate the additional three payment systems for regulation by the PSR. We are very grateful to those who took the time to respond to this consultation.
In the Financial Services (Banking Reform) Act 2013, the government provided for the creation of a new competition-focused, economic regulator for retail payment systems in the UK: the Payment Systems Regulator (PSR). In April 2014, the PSR came formally into being and it will be fully operational from April 2015.
In line with the provisions of the Act, this document sets out the payment systems HM Treasury intends to designate to be brought under regulation by the PSR, explains its reasons for believing that these systems meet the designation criterion set out in the statute, and invites responses. HM Treasury will make its final decision on which systems are to be designated, taking into account any representations received, in time for designation to be effective from April 2015.
This consultation invites responses on proposals for the designation of payment systems for regulation in the UK. It should be read by those with an interest in the future development and strategy of payments systems and the users of those systems. This includes banks, building societies and other payment service providers, the owners and operators of payment systems, businesses, trade bodies, consumer groups and other interested parties.