Payment systems

Payment systems

This Overview is a guide to the Lexis+® UK Financial Services content within the Payment Systems subtopic, with links to appropriate materials.

'Payment systems' are a key part of the UK financial services industry. They underpin the services that enable funds to be transferred between individuals and institutions, such as paying by direct debit or transferring money via a mobile telephone.

At the moment, the payment systems industry is regulated by the Payment Systems Regulator (PSR), which was launched on 1 April 2015. The PSR regulates the following designated payment systems: Bacs, CHAPS, Cheque & Credit, FPS, LINK, Mastercard, Visa Europe (Visa) and Sterling Fnality Payment System.

The PSR is:

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a subsidiary of the Financial Conduct Authority (FCA) but has its own statutory objectives
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independent, with its own managing director and board
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charged with strong competition and regulatory powers
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funded by the industry
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accountable to Parliament

However, in March 2025, the government announced its intention to consolidate the PSR and its functions primarily into the FCA. The move is intended to streamline the regulatory environment, reduce overlap, and allow businesses to focus

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