Our Chief Policy and Engagement Officer, Justin Jacobs, recently joined a panel of industry experts at the Payments Regulation and Innovation Summit, to debate whether recent regulatory consolidation, and the Payments Vision Delivery Committee’s (PVDC’s) new design and delivery model for retail payments infrastructure, can create a framework for success.
Alongside Simon Eacott from NatWest, and Iana Vidal from Block, Justin shared his perspective on what the UK needs to get right to finally unlock the UK’s next generation of retail payments. A summary of his key points is detailed below.
Putting users at the centre of the next generation of payments
Justin emphasised that while discussions often focus on technology, the real starting point must be the user.
Despite the UK’s advanced payment systems, some everyday payment journeys could still be made simpler, particularly person‑to‑person payments, which often require sharing details like sort code and account number. Justin highlighted that this as an opportunity to enhance convenience and keep pace with markets that have already streamlined these experiences.
Future success is about payments that are simple, reliable and offer genuine choice, not only for end users, but also for merchants who want instant settlement and lower costs.
A new phase for regulation
Reflecting on the Payment System Regulator’s (PSR’s) consolidation into the Financial Conduct Authority (FCA), Justin described it as a necessary shift in the regulatory landscape.
While good progress has been made over the past decade, including the successful rollout of Confirmation of Payee, the former regulatory structure created challenges in delivering major infrastructure change. Justin highlighted signs of improvement already emerging, including:
- A greater focus on outcomes
- More proportionate regulatory engagement
- Clearer coordination between regulators.
These changes, he suggested, should help create a more aligned and supportive environment for industry‑wide innovation.
The PVDC’s framework: A positive start
Justin welcomed the PVDC’s “North Star” for UK payments but stressed the need for better sequencing and flexibility.
He noted that major infrastructure programmes often reveal new questions and technical challenges as they progress. The UK must avoid recreating rigid, prescriptive processes and instead allow for iteration and adaptation.
He also highlighted the importance of aligning developments in traditional money with emerging digital forms and ensuring that the new commercial model enables open access rather than creating barriers.
Migration remains another critical consideration. With systems like the Bacs Payment System embedded across more than 10,000 UK organisations, any transition must be carefully coordinated to maintain resilience.
Enabling ongoing innovation
Later in the discussion, Justin reiterated the potential for innovation in the market to continue ahead of any new infrastructure. Improvements to person‑to‑person payments, such as using QR‑based requests for payment, could be delivered now by making fuller use of existing technology. For users, what matters most is that payments are fast, simple and low‑friction, regardless of the underlying mechanism.
Resilience remains essential
A consistent theme across Justin’s comments was the importance of resilience. With cyber threats increasing across the economy, maintaining the reliability of the Faster Payment and Bacs Payment systems 24/7, is essential.
Justin highlighted ongoing investment with partners, such as Vocalink, to ensure our systems remain secure, stable and future‑ready, both today and as new infrastructure emerges.
Conclusion
In conclusion, Justin’s insights made clear that the UK can only deliver the next generation of payments by staying focused on user needs, ensuring a more coordinated and outcomes‑driven regulatory approach, and designing infrastructure that is flexible and future‑ready. He stressed that the industry can continue to innovate now leveraging existing infrastructure. At the same time, maintaining the resilience of the Faster Payments and Bacs Payment Systems remains fundamental as expectations and threats continue to grow.
Together, these priorities set the foundation for a payments ecosystem that is simpler, safer and better aligned to the needs of everyone who relies on it.
Justin said: “It was a pleasure to be part of this important discussion at the Payments Regulation and Innovation Summit. The changes ahead are significant, and the only way we will build a payments future that truly works for everyone is by staying focused on users, collaborating across the ecosystem, and moving forward with clarity and ambition.”
