fbpx

Opportunity for FinTech firms as UK regulator calls for payments reform

opportunities

New opportunities could arise for FinTech firms following the UK payments regulator call for reform.

The Payment Systems Regulator (PSR) said today that the UK’s payments infrastructure needed to undergo reform in order to increase competition and to meet consumer requirements.

Hannah Nixon, managing director of the PSR, said: ‘We need to future-proof the payments system so that the UK can continue to be at the forefront of payments innovation and deliver the best service to consumers. This means ensuring there is effective competition and that new entrants face the right conditions to enable them come to market.

“As it stands, the current system is not adequate and we need to see a change. There is not one single area of concern, but a series of issues that are entwined and require a holistic approach in order to see them resolved. The remedies we are considering are packaged to achieve just that,” added Nixon.

As part of the announcement, the regulator is proposing that the four largest banks which have common control of the payment systems operators and the infrastructure providers should sell all or part of their stake in VocaLink – recently acquired by MasterCard.

This, a statement added, would open up the market and make room for more competition and innovation.

Alain Falys, CEO and co-founder Yoyo Wallet welcomed the news, saying: “This announcement seeks to break down the current payments status quo which has remained stagnant in this country for too long.

“The best case scenario is that we now see a flood of innovative competitors coming to the fray – where the needs of consumers, and not the needs of the major payment players, will drive the sector forwar,” concluded the entrepreneur.