Payment Consolidationconsolidation of payments
It is an important stage in the first integration of three payment schemes and will improve the performance and capacities of payment system providers and reduce the complexities and cost of setting up three distinct Payment System Providers (PSOs). NPSO will also be in charge of implementing the New Payment Architecture (NPA) - an industry-led effort aimed at increasing competitiveness, robustness and fostering overall payment and bank sector innovations.
There are a number of important advantages for the consumer in the Forum's draft, such as the confirmation of the payment recipient (allowing the customer to check whether they are making the intended payment) and the payment order (a facility for a payment recipient to submit a payment order to a payer) - the NPSO's assisted supply service will be designed in a market place.
They will both give better consumer controls over payment from their bank account and better protect against cheating. PSR and the Bank of England are overseeing developments to make sure that the NPSO provides a system that benefits all and increases robustness in the UK payment industry. "Today marks the beginning of a new generation in the transformation of the British payment industry.
Bailey David, Director, Financial Market Infrastructures, Bank of England, said: "Today is an important landmark in the development of payment traffic in the UK with NPSO taking charge of the operation of the Bacs and Faster Payment system.