On 26 February 2026, HM Treasury (HMT) published the Payments Forward Plan (the Plan) delivered by the Payments Vision Delivery Committee.

The Plan

The Payments Vision Delivery Committee comprises of representatives from the Bank of England, the Financial Conduct Authority, the Payment Systems Regulator and HMT. The Plan provides a regulatory roadmap for the payments sector over the next three years alongside actions already taken to address the findings of the Future of Payments Review in 2023.

The Plan also brings together ongoing and upcoming work across retail payments, wholesale payments and certain aspects of digital assets. It includes details of initiatives, in particular:

  • The modernisation of the regulatory framework: The Plan provides a timeframe of initiatives including the consolidation of the Payment Systems Regulator (PSR) into the FCA, review of assimilated payments law including Payment Services Regulations and E-Money Regulations, systemic payment systems fee cap and the Financial Ombudsman Service reform. The Plan also states that in Q2 2026 HMT will publish a consultation paper on payment services law including its approach to Open Banking and stablecoin payments alongside an FCA engagement paper on the review of assimilated payment services law expected between Q2-Q4 2026 with a HMT Statutory Instrument to be laid in Parliament during 2027–2028. HMT is also exploring options for a systemic payment systems fee cap and will consult on proposals in Q2-Q3 2026.
  • Innovation in retail payments: The Plan notes timings for the retail payments infrastructure design and delivery programme in Spring 2026, short term enhancements to existing retail payments infrastructure including the Faster Payment System and BACS payment system by end of 2026, stablecoin reforms and Open Banking. It notes that the FCA will consult on the Long-Term Regulatory Framework interface rules in Q3 2026, with a policy statement following in Q1 2027 and HMT’s statutory instrument under the Data (Use and Access) Act 2025 expected in Q4 2026. It further notes the design phase runs of the Digital Pound throughout 2026 with HMT and the Bank of England expected to publish a blueprint and a decision on the future of the digital pound during the year. It also mentions the Competition and Markets Authority’s plans to consult on potential interventions regarding digital wallets from H1 2026 onwards.
  • Innovation in wholesale payments: The Bank’s Wholesale Experiments Programme will culminate with a final report in Q4 2026 with the Plan mentioning that the regulators are exploring in relation to the Digital Securities Sandbox (DSS), which remains open for applications until March 2027, whether regulated stablecoins can enable on-chain settlement within the DSS during H1 2026 and beyond.
  • Ensuring effective competition in card schemes: On scheme and processing fees, the PSR is consulting on remedies which aim to increase transparency of fees for acquirers, with knock-on benefits for merchants, as well as to improve the information available to the PSR on the schemes’ pricing and profitability in the UK. On cross-border interchange fees, the PSR is undertaking analysis to assess the appropriate level for cross-border interchange fees for outbound, UK-EEA, card-not-present transactions.
  • Protecting users in the system: The Plan considers timings for initiatives including authorised push payment (APP) fraud, anti-money laundering, the Payment and Electronic Money Special Administration Regime, the FCA Consumer Duty and reforms to the Consumer Credit Act 1974 in Spring 2026. This includes the Data Strategy to be published in Q3 2026 and the Anti-Money Laundering and Asset Recovery Strategy in Q3 2026 where HMT will lay a statutory instrument in Q1 2026 to improve the effectiveness of Money Laundering Regulations. In addition, the FCA is conducting multi-firm work on payments firms’ treatment of consumers in vulnerable circumstances with good and poor practice findings expected to be published in Q1 2027.
  • Access to Cash: To assess whether the Access to Cash regime has maintained reasonable access to cash in the UK. This will help ensure the rules are working effectively to support financial inclusion.
  • International: To support efforts to make cross-border payments faster, cheaper, more transparent and more accessible, including the implementation of practices that enhance safety and security and improve the detection of financial crime.

Next steps

The Payments Vision Delivery Committee has agreed to add an enhanced focus on payments to the Regulatory Initiatives Grid in its first 2027 publication.