Today, the Payment Systems Regulator’s (PSR) 2023/24 Annual Report and Accounts has been published, looking back on a year of delivery that will see numerous benefits for everyone who uses payment systems. 

Payments have continued to play a vital role in the UK economy and in the coming years will see further developments and innovation to support the ever-changing needs of users, while keeping pace with global advances. 

This past year has been one of the PSR’s most intensive delivery periods against its strategy and the regulator has continued to its priority action areas.

David Geale, Managing Director of the PSR said:

“Over the past year, we have improved payments for UK consumers and businesses through our focused efforts and strengthened engagement with stakeholders, addressing key areas such as APP fraud and open banking. 

“As an organisation, we have continued to bring in new people to support us as our work and remit broadens, particularly in our supervision and compliance monitoring division. We have enhanced our skills to deliver our ambitious plans and ensure industry is supported to deliver good outcomes.” 

On protection in payments: 

APP fraud continued to be a priority for the regulator and its vital work to address fraud in payments has moved at pace.

  • The PSR published the first set of APP fraud statistics, shining a light on how firms tackle fraud and treat victims. 
  • The PSR moved forward its plans to incentivise payment firms to make greater strides in preventing fraud and improving outcomes for victims.
  • The PSR set deadlines for firms to implement Confirmation of Payee, the name-checking service, with the first group completing by October 2023 and the second group by 31 October 2024, covering 99% of Faster Payments. 

On innovation:

Encouraging growth, innovation and the delivery of new services designed to meet the ever-evolving needs of both consumers and businesses has seen further steps taken in the delivery of open banking. This includes variable recurring payments (VRPs) in particular, which can provide people with more choice and control, as well as support financial inclusion.

  • The PSR, as part of the Joint Regulatory Oversight Committee (JROC), established the VRP Working Group in June 2023, which developed a blueprint for implementing VRPs for financial services, utilities, and government payments. The PSR also consulted on Faster Payments proposals to enable a phased rollout of VRPs.
  • Alongside the FCA, the PSR developed proposals for a ‘Future Entity’ to oversee the development of new open banking regulatory standards, with these proposals published by the JROC for consultation in April 2024.

On competition:

Cards are an important element of the UK payments landscape, and the PSR’s work provides a firm basis for supporting competition and protecting users in the future. 

  • The PSR reached important milestones with the publication of interim reports for its two market reviews – one on cross-border interchange fees, and the other on scheme and processing fees. Both reports highlighted where action could be taken and set out the regulator’s next steps. 

The PSR’s annual report includes a progress update on its full programme of work during 2023/2024, including around digital payments, maintaining free access to cash and enforcing its powers.  

To find out more about the PSR’s work programme for the year ahead, you can read its 2024/25 Annual Plan.