The UK's Payments Systems Regulator is to open the door for third party technology providers to compete in the provision of national payments infrastructure projects alongside established bank-controlled monopolies such as Bacs, Faster Payments Service and the Link interchange network.
In a market review conducted earlier this year, the watchdog identified the common ownership and control of both the payment systems and the infrastructure provider as a key concern. It also cited the need to adopt a common international messaging standard to encourage new entrants.
Under its proposals to shake up the provision of payment services, the PSR intends to mandate a competitive procurement process that will enable new infrastructure providers with different technology to enter the market. It will also push forward a common international messaging standard for Bacs and FPS to lower barriers to the market.