Priorities in payments for 2024
2 Feb 2024
2 min read
The Payment Systems Regulator (PSR) has published a speech by its Managing Director, Chris Hemsley, outlining the PSR’s priorities for 2024, aimed at realising the benefits of work undertaken during the last couple of years.
What will 2024 bring?
- APP Scams. A significant change, the new requirements around APP scam reimbursement will come into force on 7 October, setting out a minimum standard of protection and splitting the cost between sending and receiving firms. Firms are working hard to get ready for the October deadline. The PSR makes it clear that nobody can opt out of the scope of the new rules and for the first time, there will be financial incentives on the receiving side to act. The PSR is also progressing with enhanced data sharing to enable the detection and prevention of fraud. Payment firms must prioritise getting their systems, processes and people ready for the changes - including making sure their fraud risk management is effective.
- Open Banking. 2024 will see the PSR getting on with expanding open banking payments, improving performance and writing down the central rules needed. Scaling up the use of Variable Recurring Payments (VRP) will be a key part of this, allowing consumers to have more flexible ways of paying, reducing costs in payment acceptance and helping customers manage their money. Last year, the VRP working group published its recommendations on VRP use-cases such as utility payments and across regulated financial services. The PSR is working with Pay.UK and Open Banking Limited to take forward the recommendations.
- The National Payments Vision. Facing the need to upgrade the payments infrastructure, the government has announced its intention to consider the role of the New Payments Architecture (NPA) alongside the National Payments Vision. The programme is paused pending the publication of the Vision and there is not yet a clear plan forward, but the PSR wants to see the benefits that improved data standards can bring, as well as instant payment and new and cheaper ways to connect to its systems.
"So, in closing, we all have a busy year ahead. 2024 will see us implementing changes that will improve outcomes for people and businesses. Collectively, we will be taking a major step forward on tackling payment fraud, while navigating through to a full framework for open banking payments. And we will be well on our way to making any further changes, as our card fees work draws to a close."