Payments Association Calls for a National Payments Plan in the UK
The Payments Association in the UK is urging the government to develop a National Payments Plan (NPP) as part of its broader Payment Manifesto 2025. This ambitious proposal aims to create an environment that supports growth, innovation, and economic stability within the payment sector. By advocating for a comprehensive review, the association hopes to align the NPP with the UK’s National Payment Vision and Strategy (NPV&S), paving the way for a new era in payments.
Payments Manifesto 2025: A Blueprint for the Future
The Payments Manifesto 2025 outlines 66 policies that address key issues such as financial crime, regulation, open banking, environmental sustainability, and digital currencies. These recommendations have been carefully crafted by payments professionals and members of The Payments Association’s stakeholder working groups. The goal is to create a robust and inclusive financial ecosystem that fosters innovation while ensuring consumer protection.
Financial Crime: Strengthening Defenses
The manifesto focuses on combating economic crime like fraud and money laundering. It recommends enhancing data sharing, expanding regulatory oversight to social media firms, and adopting digital verification frameworks. It also advocates for interoperable dispute management systems to reduce APP and first-party fraud, aiming to create a safer financial environment.
Regulation: Balancing Innovation and Stability
Effective regulation is vital for the payments ecosystem’s success. The Payments Association urges regulators like the FCA and PSR to balance innovation, competition, and consumer protection. Prioritizing growth, the UK can stay competitive and attract investment, boosting economic stability.
Financial Inclusion: Bridging the Gap
The manifesto advocates for digital payment to reduce the poverty premium and enhance financial access for underserved communities. By promoting innovation, the association aims to create a more inclusive economy benefiting all.
Open Banking, Cross-Border Payments, and Digital Currencies
To accelerate the adoption of open banking, the manifesto promotes consumer protection and equitable commercial models. It also outlines strategies to reduce transaction costs in cross-border payments, harmonize regulations, and support the adoption of digital currencies. The association aims to position the UK as a leader in digital finance, advocating for a strong regulatory framework for stablecoins and digital money.
Supporting Growth and Innovation
Riccardo Tordera, Director of Policy and Government Relations at The Payment Association, stated that the policies in the Manifesto will enhance systemic resilience, streamline international transactions, and reduce costs. This, in turn, will support the government’s goals of boosting GDP and strengthening international business relations.
Conclusion
The Payment Association’s call for a National Payment Plan is a bold step towards transforming the UK’s payment landscape. With a focus on innovation, regulation, and financial inclusion, the Payment Manifesto 2025 aims to create a dynamic environment that benefits businesses and consumers alike.