The Payments Association has also launched a manifesto, which it says would create conditions to support growth and innovation in payments.

The government is producing a National Payments Vision and Strategy (NPV&S) that reflects its recognition of the systemic importance of payments to the UK authorities and how a new era for payments must begin. After the publication of the NPV&S, The Payments Association has urged the UK authorities to undertake a swift and well-defined review which leads to the production of an NPP which would:

• Reinforce the four outcomes identified in the Bank of England’s recent paper on the Bank’s approach to innovation in money and payments: the singleness of money; innovation; resilience of infrastructure and the wider ecosystem; and effective governance and funding.
• Prioritise initiatives and decide on investment programmes.
• Address institutional changes that may include the rationalisation of current institutions and changes to governance to underpin a resilient, modern, efficient and inclusive payment ecosystem that meets the evolving needs of businesses and consumers.
• Include strategic change programmes aligned with key priorities, including independent oversight, regulatory effectiveness, innovation, and risk management.

The manifesto describes the 66 policies recommended by the 216 payments professionals who participate in The Payments Association’s stakeholder working groups. These cover financial crime, regulation, open banking, ESG, cross-border payments, digital currencies and financial inclusion.

The Payment Association’s manifesto is creating the conditions to support innovation and growth. The policies within the manifesto reflect views expressed by members, and was created after extensive discussion to support the government’s innovation and growth agenda, while also highlighting concerns.

Financial crime
The first area of concern to The Payments Association’s members addresses economic crime, including fraud and money laundering, with policies to reduce authorised push payment fraud focused around improving data sharing, as well as widening the scope of the regulatory boundaries to include social media firms and others that encourage the use of artificial intelligence to assimilate data to fight fraud. 

Furthermore, the manifesto includes policies to encourage the use of interoperable dispute management systems to tackle first party fraud and reduce errors and the adoption of robust digital verification frameworks to create a safer financial ecosystem.

Regulation
The government’s commitment to kick-start economic growth, deliver economic stability and forge partnerships with businesses to boost growth everywhere requires good regulation implemented in a dynamic and responsible manner. 

Regulations and regulators are central to an effective payments ecosystem, so The Payments Association advocates for a balance between innovation, competition and consumer protection. It urges regulatory bodies such as the Financial Conduct Authority and the Payment Systems Regulator to prioritise growth and competitiveness alongside their other primary objectives to ensure that the UK remains an attractive destination for investors.

Financial inclusion
The policies aim to work alongside the government’s work to promote financial inclusion to ensure innovation serves diverse needs of businesses and consumers. While cash remains a popular means of payment for many, digital payments can help reduce the poverty premium and ensure financial inclusion for those still unable to access appropriate financial services. 

By supporting initiatives that enhance digital payments innovation and by tailoring payment services to diverse needs, The Payments Association is paving the way for a more inclusive economy where everyone can participate and benefit.

Open banking, cross-border payments, digital currencies and sustainability
The community also supports accelerating open banking adoption by promoting consumer protection and dispute resolution for account-to-account payments and developing equitable commercial models. 

By accelerating the evolution from open banking to open finance and then open data, The Payments Association believes its policies will stimulate innovation and competition, providing consumers with better (and cheaper) financial products and experiences.

The policies for cross-border payments is targeted at reducing transaction costs and harmonising regulations to facilitate seamless and secure international transfers. Meanwhile, environmental, social and governance (ESG) policies are aimed at making payment products more sustainable and the industry more diverse and inclusive. 

Finally, in the arena of digital currencies, the policies are aimed at positioning the UK as a leader in digital finance, advocating for a robust regulatory framework for stablecoins and the adoption of digital money.

To download the payments manifesto for innovation and growth – ‘Creating conditions to support innovation and growth in payments’ – click here.

The Payments Association (previously the Emerging Payments Association or EPA) is a community for all companies in payments, regardless of size, capability, location or regulatory status. It also runs seven stakeholder working project groups covering financial inclusion, regulation, economic crime, cross-border payments, open banking, digital currencies and ESG. 

• Comment below on this story. Or let us know what you think by emailing us at [email protected] or tweet us to tell us your thoughts or share this story with a friend.