PS25/4: Decision to revoke Specific Direction 3 and consultation on revoking Specific Direction 2

We have published our decision to revoke Specific Direction 3 (and 3a, which amended Specific Direction 3), and are consulting on the revocation of Specific Direction 2.

The National Payments Vision (NPV) tasked the PSR and the Bank of England (the Bank) with reassessing the requirements for retail payments infrastructure, and strengthening the governance and funding arrangements needed to deliver this. The decision to revoke SD3 provides the necessary space and certainty for that work to progress, with recommendations to the Payments Vision Delivery Committee (PVDC). By revoking SD3, we are providing the space and flexibility for these outcomes to materialise unencumbered by legal obligations in SD3.

Specific Direction 2

During the consultation, some respondents proposed reviewing, and potentially revoking, Specific Direction 2 (SD2)*. Our initial view is that our reasons for revoking SD3 may also apply to SD2, particularly that doing so could provide the necessary space and certainty for work to deliver the NPV.

We are therefore considering revoking SD2 (and SD2a, which amended SD2).

Next steps

We have decided to revoke SD3 and SD3a. We have given a Specific Direction to Pay.UK to that effect. It comes into force on 21 May 2025.

We are also considering revoking SD2 (and SD2a) and are seeking views until 5pm on 5 June 2025. You can email your comments to PSRNPA@psr.org.uk.

We will continue to monitor Pay.UK’s work to ensure an outcome that supports competition, innovation, and the interests of service users. As part of this work, we and the Bank will maintain close regulatory oversight of Pay.UK before it extends the current Faster Payments contract with the incumbent supplier.