On 22 November 2023, HM Treasury (HMT) published a report on the Future of Payments Review. The report, published alongside the Chancellor’s Autumn Statement, considers how payments are likely to be made in the future and makes recommendations on the steps needed to successfully deliver world leading retail payments, further boosting UK fintech competitiveness.

The report makes the following recommendations:

  • The Government should develop a National Payments Vision and Strategy to bring clarity to its future desired outcomes for UK payments.
  • There is a need to improve the consumer shopping experience by moving strong customer authentication  requirements away from detailed technical standards for the FCA to supervise via an outcomes-based approach. HMT and the FCA should also regularly assess whether digital exclusion is leading to financial exclusion.
  • Consumer protection on payments made via Open Banking should be enhanced with a minimum form of dispute resolution.
  • Open Banking should be leveraged to improve the person-to-person bank transfer payments journey.
  • An Open Banking alternative payment journey should be developed to give retailers choice beyond card schemes. In addition, the Payment Systems Regulator (PSR) should complete its work investigating card scheme fees.
  • The Government and Joint Regulatory Oversight Committee should prioritise agreement of a commercial model for Open Banking so that there is scope to invest in both infrastructure and consumer protection.
  • The PSR should conduct a review of the new authorised push payment fraud rules after 12 months of implementation and the Government should set a more ambitious fraud crime reduction target beyond 2024.
  • HMT and the regulators should review whether the way some current regulatory requirements are applied to fintechs is clear and appropriate.
  • HMT and the regulators should take a variety of actions to drive closer alignment of regulatory activity, including through updated remit letters, enhancing the regulators’ existing Memorandum of Understanding, ensuring cross-pollination at board level and working to reduce the regulatory initiatives impacting firms by an aspirational ambition of 10%.