The Payment Systems Regulator will be abolished and rolled into the Financial Conduct Authority in a drive to cut business red tape.
Prime Minister Keir Starmer says payment firms had to deal with three different regulators in this area, “costing them time, money and resource”.
He adds that his administration “will set out further steps to reduce red tape in the coming days,” in line with its plans to boost economic growth.
The Financial Conduct Authority is also expected to scrap its controversial plans to name and shame firms it investigates today.
The Payment Systems Regulator – which looks after payment systems like Faster Payments and Mastercard – will mainly be rolled into the Financial Conduct Authority.
The move comes after firms complained that the current regulatory payments system was too complex.
Starmer adds: “For too long, the previous government hid behind regulators – deferring decisions and allowing regulations to bloat and block meaningful growth in this country.
“This is the latest step in our efforts to kickstart economic growth, which is the only way we can fundamentally drive up living standards and get more money in people’s pockets.”
Financial Conduct Authority chief executive Nikhil Rathi adds: “Payment Systems Regulator colleagues have made payment systems safer, more competitive and increasingly innovative. They should be proud of the huge amount achieved.
“With a changed payments landscape, now is the right time to put in place a more streamlined regulatory framework. Doing so is a natural next step following recent work to improve coordination and clarity on regulatory responsibilities.
“We will work closely with government, the Bank of England and the payment sector as the details of this change are decided and to ensure the transfer of any powers is smooth.”
