The Payment Systems Regulator (PSR) has published an interim report on its market review into the supply of indirect access to payment systems.
The PSR’s interim conclusion is that, although competition in the supply of indirect access is producing some good outcomes for indirect payment services providers (IPSPs), the PSR has specific concerns about choice, service quality and the ability of IPSPs to switch providers. In particular, industry responses to financial crime regulation are still limiting the provision of indirect access for some IPSPs.
The PSR states that the purpose of sharing its thinking through this interim report is to engage stakeholders on its findings and its approach to improving indirect access to interbank payment systems. The PSR’s interim proposal is that it will monitor developments and consider taking regulatory action either as part of the market review, or if its concerns are not sufficiently addressed within 12 months.
The PSR welcomes views on its interim conclusions by 5 May 2016. The PSR expects to publish a final report in July 2016. This report will set out its finalised conclusions and approach to improving the supply of indirect access.