Operational responsibility for the Bacs and Faster Payments systems, which process a combined £6.3 trillion worth of payments annually, has today (1 May 2018) transferred to the New Payment System Operator (NPSO).
The move ensures the continuity of operations of the UK’s main payment systems, which are relied on every day for thousands of salaries, benefits, bills, mortgage and other internet and mobile banking payments. Users of these payment systems will not have to do anything differently, all payments are being processed as usual.
The transfer of the operational responsibility and control for the Bacs and Faster Payments products and managed services occurs simultaneously with Bacs and Faster Payments schemes becoming subsidiary companies of the NPSO. 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.
Paul Horlock, Chief Executive of the New Payment System Operator, said:
“Bacs and Faster Payments have developed a huge amount of trust in payments through the certainty, integrity and security inherent in their systems. The NPSO will maintain that stability and security whilst ensuring the continued relevance and competitiveness of the services we provide.
“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 formed 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.
The Cheque & Credit Clearing Company Limited (C&CCC), which manages the paper processing system for cheques and incorporates the recently launched Image Clearing System (ICS), is also due to join the NPSO in the coming months along with UK Payments Administration Limited (UKPA), the company which provides people, facilities and business services to the payment ecosystem.
Contributed | what does this mean?