PSR unveiled the final conclusions of its market review into the ownership and competitiveness of the infrastructure that supports three payment systems – Bacs, Faster Payments Service and LINK.
PSR considers a series of changes including the adoption for a common international messaging standard to encourage new entrants, and the creation of a competitive procurement process that addresses consumer needs.
The regulator has seen that payment system operators are currently controlled by a relatively small number of large banks, which also own and control VocaLink – the single infrastructure provider that the operators use to process payments.
The regulator is proposing that the four largest banks that have common control of the payment system operators and the infrastructure provider should sell all or part of their stakes in VocaLink, in order to open up the market and allow for more effective competition and innovation.
The full report can be downloaded from the PSR website.
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