TONY CRADDOCK
BEYOND THE BLUEPRINT Tony Craddock outlines strategic advancements for the UK’s payment landscape post-National Payments Vision
So now the UK has a National Payments Vision (NPV), can we rest at night, knowing that everything will work out for the best? I represent the UK’s largest community in payments. While every one of the 225 members of The Payments Association (TPA) faces its own challenges, most share common views of the NPV. They think it shows strong government leadership. They think it offers us the chance to redefine payments for years to come. And they think the NPV’s true value will only be realised through its effective implementation.
payments. Improving it while maintaining resilience will require significant coordination between regulators, financial institutions, trade bodies and technology providers. And it will have to battle against the powerful enemy of progress: vested interest. But I believe that tweaking the current model is not enough. Instant payments are now processed by one scheme operator. A recent TPA paper proposes that instant payments should be opened up to multiple scheme operators on a commercial basis, as with the card rails. Such a competitive model deserves serious consideration. 3 Reassess risk With 90 regulators in the UK, the current approach is both costly and restricts innovation and competition. Along with the Chancellor, we think we should reassess risk. TPA intends to explore the costs and benefits of making small policy changes to risk thresholds, such as lifting the £100 contactless payment limit. But instead of making small tweaks, we might need radical change, taking a leaf out of the American playbook where a systemic shift in regulatory cultures and practices is taking place. To quote Andy Haldane in the Financial Times (CEO of the RSA and ex-chief economist at the Bank of England): “The upcoming government regulatory action plan to be published in March could borrow from American reforms: reducing regulation budgets, clarifying the government’s appetite for consumer loss, imposing strict CEO sanctions for failures, and adopting AI to streamline rules and automate compliance.”
The NPV sets out a promising framework, but its success will depend on its effective implementation and the willingness of all stakeholders to embrace bold, sometimes radical changes. By focusing on digital identity, opening up the instant payments market, and reassessing risk, the industry can drive innovation, enhance inclusion, and build a more competitive market. Resting at night might be a luxury in this dynamic landscape, but with continued focus and commitment, the future could indeed prove to be as bright as the vision suggests.
But where should we go beyond the current NPV? I have three main
AT A GLANCE A passionate payments innovator and community leader, Tony Craddock is the founder of The Payments Association, the world’s most influential trade association in payments. With 25 years of
suggestions that will de-risk the NPV and increase the depth and scope of its impact. 1 Embrace digital identity We must move beyond the Data (Use and Access) Bill that gives us a commonly accepted UK digital identity and attributes trust framework by making digital identity mandatory for most use cases. This would help us reduce costs, reduce fraud (especially authorised push payment fraud) and help deter illegal migration and combat tax avoidance. It would also ignite innovation in things like the use of digital currencies such as CBDCs, stablecoins and digital asset tokens. We have already made a good start with the Gov.UK wallet and plans for digital driving licences, but mandatory DID could be a powerful lever for growth. 2 Learn from the card schemes and open the market for instant payment providers The first phase of the NPV focuses on improving the essential infrastructure of
experience, he is a trusted voice in the industry, serving as a member of the UK’s Vision Engagement Group and contributing to the Founders4Schools programme. Tony is dedicated to championing payments innovation through speaking engagements, conference chairing and publishing white papers and books. He works closely with regulators, ministers and parliamentarians to promote the changes needed for the payments sector to thrive. Linkedin: linkedin.com/in/tonycraddock Web: thepaymentsassociation.org
Linkedin: company/the- payments-association/ X: @ThePAssoc
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