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UK Payments Overhaul: Consultation Launched for Next-Gen Infrastructure

The Retail Payments Infrastructure Board has launched a consultation on the future design of the UK's retail payments system. This initiative aims to modernise the landscape, enabling new payment methods and greater choice for consumers and businesses.

  • RPIB launched a consultation on the future design of the UK's next-generation retail payments infrastructure.
  • The new system aims to support innovation, offer greater choice, and enable seamless payments, including new account-to-account options.
  • Feedback from the consultation, open until 11 September 2026, will inform the 'blueprint' for the new infrastructure.
  • A new industry-led 'Delivery Company' will be responsible for implementing the core infrastructure.
  • The initiative aligns with the National Payments Vision to modernise UK retail payments.

The Retail Payments Infrastructure Board (RPIB) has initiated a significant consultation process concerning the future architecture of the UK's retail payments infrastructure. This move represents a pivotal step in modernising the nation's payment landscape, aiming to establish a secure and adaptable foundation for future financial transactions.

The proposed next-generation infrastructure is designed to foster innovation, provide consumers and businesses with greater choice, and facilitate more seamless payment experiences. Crucially, it will support both existing and emerging forms of digital money. The consultation specifically seeks input on the various types of payments the new system should accommodate, including novel methods such as account-to-account payments at the point of sale, which would offer an alternative to traditional card payments. Enhanced cross-border payment capabilities are also a key focus, promising faster and smoother international transactions.

Victoria Cleland, Chair of the RPIB, emphasised the collaborative opportunity to transform the UK's retail payments. She stated that the vision is for an infrastructure that maintains resilience and trust while acting as a platform for innovation, responsive to evolving user needs. The RPIB, an advisory board chaired by the Bank of England, comprises experts from across the payments ecosystem, including banks, building societies, payment service providers, fintechs, and merchants.

The feedback gathered from this consultation, which runs until 11 September 2026, will be instrumental in shaping the 'blueprint' for the future infrastructure. This high-level design will then guide the work of a new industry-led 'Delivery Company', which will be responsible for implementing and owning the core infrastructure. Throughout this development, Pay.UK, the current operator of the UK’s retail interbank payment systems like Faster Payments and Bacs, will continue to ensure their safe and resilient operation.

This initiative aligns with the broader National Payments Vision and the strategy set out by the Payments Vision Delivery Committee (PVDC). The PVDC, a cross-authority body chaired by HM Treasury, brings together the Bank of England, the Financial Conduct Authority, and the Payment Systems Regulator to achieve the government's ambition for a trusted, world-leading payments ecosystem built on next-generation technology.

While the consultation focuses on the future of retail payments, it is important to note that no decision has yet been made regarding the potential introduction of a digital pound. The Bank of England and HM Treasury are currently in the final stages of the design phase for a digital pound and are expected to publish their conclusions later this year, independently of this retail payments infrastructure consultation.

Why this matters: This consultation is crucial for the future of how everyone in the UK pays for goods and services, potentially introducing new, faster, and more flexible payment options. It aims to secure the UK's position at the forefront of global payment innovation.

What this means for you: What this means for you: This could lead to new ways to pay, such as direct account-to-account transfers at checkouts, potentially offering more choice and potentially faster, more secure transactions for everyday purchases and bill payments.

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