The consolidation of UK payment system operators marks another big step in delivering on the New Payments Architecture.

By Stuart Davis and Brett Carr

What happened?

Operational responsibility for the Bacs and Faster Payments systems, which process a combined £6.3 trillion worth of payments annually, has transferred to the New Payment System Operator (NPSO).

The successful consolidation of the operators (and planned consolidation of the Cheque and Credit Clearing Company in late 2018) has been a key focus for both the Payment Systems Regulator (PSR) and the Bank of England. Proponents argue that by bringing the operators together, the NPSO will help not only to simplify access to payment systems and promote competition, but will also help deliver other identified solutions (see What’s next?). As a single, primary deliverer of many of these solutions, the NPSO will be more efficient than the current three entities and it will be able to realise projects and their benefits more quickly and cost effectively. The consolidation plan has been articulated in the Payment System Operator Delivery Report issued in May 2017.