Payment Landscape Review: HM Treasury’s response to call for evidence
20 October 2021
HM Treasury released the government response to the call for evidence looking into the future of the payments landscape. The consultation, which ran from 28 July 2020 to 20 October 2020 received 68 responses from a range of stakeholders.
The governments vision for the payment sector to be the “forefront of technology and innovation.” This vision has high-level aims to benefit end users, develop new and existing payment networks and for UK payment systems to be stable, reliable, and efficient.
Key areas that will require government action, legislation and industry uptake are:
• Equipping faster payment for the future
o Ensuring the UK’s payment architecture is world leading
• Unlocking open banking enabled payments safely and securely
o Enable customers to pay for goods and services directly from an account, rather than with a debit or credit card
• Enhancing cross-border payment
o Allowing businesses that deal outside the UK to process payments seamlessly and cheaply
• Future-proofing the legislative and regulatory framework for payments
o Encouraging innovation while ensuring consumer protections and network resilience
As pay-on-demand grows in uptake from employers, a more robust and fluid payment network will be essential to companies that offer this to employees. As the UK invests more in its payment infrastructure it will open opportunity for innovation that will help the payroll profession deliver to its stakeholders.
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