Latest news with #PayUK
Finextra
15-07-2025
- Business
- Finextra
BofE sets out model for delivering National Payments Vision
The UK is overhauling its approach to retail payments infrastructure, with a greater role for the Bank of England and the creation of a new industry-led delivery company to work alongside 1 In November 2024, the government published its National Payments Vision (NPV), vowing to cut through the "regulatory congestion" facing the sector to deliver a world-leading ecosystem based on next generation technology that delivers economic growth. The UK is in the process of developing a New Payments Architecture programme, which will replace the current Faster Payments and Bacs retail interbank payment system, with clearing and settlement taking place over a single purpose-built central infrastructure. The NPV says that upgrading the UK's retail payments infrastructure has been "slow and challenging". To drive the new NPV, a Payments Vision Delivery Committee chaired by the treasury and containing the BofE, Financial Conduct Authority and Payments Systems Regulator was created. The committee has now set out its plans for a model to deliver the next generation of UK retail payments infrastructure, supporting businesses and consumers and embedding public and private sector collaboration. A Retail Payments Infrastructure Board will be chaired by the BofE, reflecting its role as operator of the Real-Time Gross Settlement service and experience of renewing infrastructure. Members will include ecosystem representatives, a rep from and a rep from the new Delivery Company. This Delivery Company will then have responsibility for procuring and funding the new infrastructure, ensuring "the right expertise is driving activity at each stage of design and delivery, with clear mechanisms to ensure coordination, including with The central bank insists that - which currently operates the national retail payment systems including Faster Payments, Bacs and Direct Debit - "will retain its fundamental role as operator of existing interbank payment systems" and will collaborate closely with the Delivery Company. The committee will publish its strategy in the autumn, with the Payments Forward Plan arriving by the end of the year, setting out a sequenced plan of initiatives across the ecosystem including initiatives in both retail and wholesale payments, and the role of digital assets. A Mastercard spokesperson welcomed the plan: "These measures are designed to re-establish the UK's position as a world leader in Account to Account payments. We support the introduction of the Industry Led Delivery Company which delivers on key findings of the Garner review, and the greater role for the Bank of England in overseeing the modernisation of UK A2A infrastructure."
Finextra
08-07-2025
- Business
- Finextra
Confirmation of Payee five years on
0 This content is contributed or sourced from third parties but has been subject to Finextra editorial review. Five years ago, the UK's financial landscape underwent a profound transformation with the introduction of Confirmation of Payee (CoP) . The service was launched by in 2020 to reduce the number of misdirected payments by verifying the account details of the intended recipient before a payment is made. Having since also demonstrated its effectiveness in mitigating and reducing certain types of fraud, the service has now become a customary part of the payment journey for both payment service providers and end users. I've had the privilege of working as part of the team that took CoP from a blueprint in 2018 to a service that today covers 99% of organisations initiating Faster Payments in the UK, and completes more than 2.1million checks every day. Most importantly, however, are the impressive results brought about by the service in this time. The Credit Payment Recovery sent claim percentage rate for the 'incorrect account' category (as a proportion of Faster Payment sent transactions) is a sound indicator of a reduction in misdirected payments. Since the launch of CoP , we have seen a 59% reduction in this category and a 20-40% reduction in financial losses to end users for some types of fraud, according to the UK Finance Annual Fraud Report 2025. Confirmation of Payee's international influence Owed to its measurable impact and innovative nature (a full name matching capability that provides a more robust and user-friendly solution than earlier binary (yes/no) and attribute-based checks), Confirmation of Payee has come to be seen as a 'poster child' of payment verification initiatives around the world. We have, and continue to, actively engage with our international counterparts, sharing the insights and learnings from our own journey, to help inform the development of these initiatives and strengthen payment security. These collaborative efforts have delved into critical aspects of implementation, including legal and liability frameworks, directory implementation, testing methodologies, customer communications, and the development of standardised matching logic and user experience. The rollout of New Zealand's GetVerified in 2024, Australia's Confirmation of Payee in July 2025, and Europe's Verification of Payee in October 2025, all serve as testament to both Confirmation of Payee's influence in effectively reducing misdirected payments and mitigating financial crime, and a shared understanding of the critical need for enhanced payment security on a global scale. The future of payment verification As we reflect on CoP's remarkable journey five years on, the question naturally arises: what's next? As well as maintaining the vital service that CoP provides, it is also crucial to continually assess the evolving financial landscape and progress the service as new challenges and opportunities emerge. We are currently exploring other use cases of the service and whether there are other organisations, further to payment service providers, that could benefit from employing CoP, such as Bacs Approved Bureau and Bacs Approved Software Solution providers. We are also looking at how we can implement other fraud prevention and detection tools that can check additional data points that can support payment service providers in identifying potential fraudulent accounts prior to a payment being processed. The most ambitious vision is a future where CoP transcends national borders. The ultimate goal is a truly global service that can be applied to cross-border payments, rather than relying on a multitude of similar, yet separate, services across different countries. This would not only enhance global financial integrity but also streamline cross-border commerce, benefiting governments, businesses and individuals. To this end, we will continue to monitor the development of similar initiatives around the world and, in parallel, explore how we can refine our own model to ensure interoperability for cross-border payments. CoP has already proven to be a powerful tool in the fight against financial fraud and payment errors. Its journey from a domestic initiative to an international standard is a testament to its efficacy and the collaboration of the global financial community. As we look ahead, we will continue to leverage the success of CoP, both in the UK and in a global context, to build a more secure, efficient, and borderless payment ecosystem for everyone, everywhere.
Daily Mail
21-06-2025
- Business
- Daily Mail
EXCLUSIVE How 5,600 high rollers switched current accounts with £100,000 in the bank
Thousands of current account switchers have transferred with more than £100,000 in the bank, exclusive data shows. Since the start of 2024, 5,600 people have used the official Current Account Switching Service (Cass) to swap bank with six-figure sums. Many banks offer cash incentives of up to £200 to entice new customers to switch primary bank account. The process of switching accounts became smoother with the arrival of Cass in 2013 which is operated by Pay UK. It has facilitated more than 11m bank switches. In the first three months of 2025, 228,805 bank switches took place, according to bank-specific data from Cass. Of these, 995 switched their current account with balances of more than £100,000, the data reveals, representing 0.4 per cent of bank switchers. In the same period, 13,259 people moved balances between £10,000 and £99,999.99. There are some 8.3m current accounts in Britain with balances of £10,000 or more and 80pc of these accounts pay no interest, according to savings app Spring. The average current account balance is around £2,000. For those earning 0pc on £100,000, they would get £4,500 annual interest with the top paying easy-access rate from Coventry Building Society. Individuals who transfer six figure sums will also breach Financial Services Compensation Scheme (FSCS) protection. This guarantees sums of up to £85,000 per individual if a bank goes bust. John Dentry, of Pay UK, said the fact people feel safe enough to move across large sums is because it provides a secure service, guarantees completion within seven days and carries all direct debits across. If something goes wrong, Cass promises to refund interest lost and any charges. It says 99.8pc of switches complete without a problem. The Cass data also shows 50,000 people switched between £1,000 and £9,999.99 to a new bank account in the first three months of the year. But most switchers transferred between 1p and £999, with 130,824 switching this amount. Birmingham was the hotspot for switching, with just shy of 6,000 customers taking the leap. This was followed by Sheffield, Manchester and Nottingham.
Telegraph
07-06-2025
- Business
- Telegraph
Why banks may no longer refund fraud victims
Lenders are lobbying for new fraud reimbursement rules to be watered down over fears scam victims are being told to lie to their banks. Since last October, companies which handle payments have been required to give victims of 'Authorised Push Payment' (APP) fraud their money back, up to a limit of £85,000. In the first three months, 86pc of money lost to the scams – approximately £27m – was reimbursed to consumers by 60 firms. The current rules mean that, other than a £100 'excess' which firms can remove from payments, the only reasons that customers can be denied a payout are if they've ignored warnings, failed to quickly notify their bank of the fraud, refused to share information about the scam or do not consent to a police report being made. But in meetings in May, banks demanded that requirements for victims to act reasonably – and not to lie to their bank – were made stronger. This would mean that customers could be denied refunds in more cases. The Payment Systems Regulator (PSR) will hold an independent review of the mandatory scheme in October, and will then recommend changes. Problems raised include the high reimbursement limit, compliance monitoring by which administers the scheme, and the limited number of exemptions for refusing payouts. Lenders also said they should be able to give clear warnings about lying to them, as victims are often guided to do by fraudsters. One bank told industry magazine The Banker that: 'The [consumer negligence] bar is set so high that in almost all these cases a customer can be incredibly reckless, can lie to their bank, can ignore warnings and still get their money back.' Riccardo Tordera, director of policy and government relations at The Payments Association (TPA), said: 'The PSR says just 2pc of claims are rejected on this basis yet acknowledges no clear shift in consumer behaviour. 'Meanwhile, the Financial Ombudsman Service and the PSR both apply a stricter definition of gross negligence than common law, which could make enforcement of reimbursement policies challenging in a British court.' Under the previous voluntary code – called the Contingent Reimbursement Model (CRM) – customers could be refused for ignoring warnings or failing to verify the payee. Now the test is much stricter. Reimbursement numbers never jumped above 75pc under the old scheme – compared to 86pc for the mandatory payouts. APP scams see victims convinced to move their money themselves, eventually into a 'safe' account controlled by the fraudsters, at which point it is lost. Ticket sale scams, such as those experienced by Oasis and Taylor Swift fans, are also considered APP frauds. At first glance, the implementation has gone well. The amount lost in APP frauds dropped by 2pc between 2023 and 2024, according to UK Finance, and the number of cases fell by a fifth. But £450.7m was still lost to fraudsters last year. But the scheme has not been without its critics. Before the scheme was implemented, some parts of the industry warned of the potential problems of moral hazard – which is when consumers are incentivised to lie – and that fraudsters would pose as victims. This, it was claimed, would drive a significant spike in claims. But these fears have not materialised. Originally, the reimbursement limit was set to £415,000 – with firms expected to pay out just days after claims were made. But lobbying saw the limit dropped to £85,000, the same as the Financial Services Compensation Scheme (FSCS), which protects money deposited with banks. Smaller and medium-sized payment companies had said that one large claim could wipe them out. David Geale, managing director of the Payment Services Regulator (PSR), which is responsible for the scheme, said in May that: 'While it is too early to draw firm conclusions based on the period covered by this data, we have not seen evidence of spikes in claim volumes that some had feared would occur under the policy.' Before the scheme was introduced, there was a voluntary code which most of the major banks were signed up to, run by the Lending Standards Board. Sources at the LSB said last year, before reimbursement was mandatory, that they had not seen fraudulent claims. Rocio Concha, director of policy and advocacy at Which?, said: 'Based on the available data from the PSR, the new mandatory scheme appears to be performing well, with more fraud victims getting their money back. 'Sections of the industry had tried – without producing any evidence – to claim that mandatory reimbursement would lead to consumers acting irresponsibly or even teaming up with criminals to con banks out of cash. This seemed ludicrous at the time and initial insights have borne that out.' Ms Concha added that while the number of cases were down, there was another worrying trend. She said: 'Latest industry figures suggest more victims are being tricked into sending money to bank accounts overseas controlled by fraudsters. That is concerning as these transfers aren't covered by the new mandatory reimbursement rules.' A spokesman for the PSR said: 'We have always been clear that we would have an independent review following the implementation of the policy. 'If we think there are key learnings or adjustments to make to our policy, we will consider those carefully before making any changes.'
FF News
02-06-2025
- Business
- FF News
Visa Brings Smarter Pay-by-Bank with Built-In Consumer Protections to the UK Market
Visa, a global leader in digital payments, is today announcing that its new pay-by-bank solution is ready for market in the UK. Built on Visa's decades of payments expertise, Visa A2A gives consumers greater choice, control and protection over how they pay via bank transfers. It is designed to make pay-by-bank transactions — including bill and subscription payments— safer and smarter. Visa A2A introduces an easy and intuitive experience for consumers, allowing them to easily manage their bills and subscriptions through their bank app. For the first time in the UK, it also introduces Visa's best-in-class consumer protections to bank transfer transactions, including clear guidelines for consumers, businesses and banks on rights and responsibilities should things go wrong. This will effectively provide a similar level of protection typically associated with card payments, so consumers can get their money back if there is an error. Visa A2A also benefits businesses, as near real-time settlement through Faster Payment System gives them greater visibility over payments and makes cash flow management simpler. Businesses can take advantage of the digital nature of Visa A2A, including notifications if a consumer changes or cancels payment permissions, and it also provides them with the ability to include more transaction data for reconciliation. Visa A2A is based on an open model that will enable banks and other industry partners to join and extend open banking-enabled payments to businesses. With a commercial model designed to work for all participants in the ecosystem and to boost the UK fintech community, Visa A2A will help to unlock the full potential of open banking in the UK. Research from Innovate Finance indicates that advancing the UK's FinTech ecosystem – a key partner in the development and delivery of Visa A2A – could unlock £328 billion over the next five years1. Safer e-commerce With an operational technology platform ready to process bills and subscriptions, Visa plans to expand Visa A2A, including e-commerce payments in the UK with a phased approach. This expansion means consumers choosing to use pay-by-bank across a variety of use cases, could benefit from similar levels of protection to those currently offered by card payments. Visa A2A for e-commerce will offer a secure, hassle-free way to pay directly through bank accounts. Customers will be able to authorise this payment method once, then simply choose pay-by-bank at checkout for a one-click purchase experience that is fast, seamless and secure. Mandy Lamb, Managing Director, Visa UK and Ireland, said: 'The UK has spearheaded innovation in financial services for many years, and in light of increasing fraud and international competition, we must continue to lead the way. 'We are proud to be working with our partners to deliver a state-of-the-art pay-by-bank experience, coupled with Visa's best-in-class consumer protections. 'Visa A2A is a game-changer – it means for the first time UK consumers and businesses using pay-by-bank will benefit from a similar level of protection typically associated with card payments.' Isabel Pitt, Deputy Director of Payments, Nationwide Building Society, said: 'A2A payments are rapidly gaining traction across UK businesses and consumers, offering a seamless and efficient way to transact. However, for these payments to reach their full potential, the right framework – rules, capabilities, and protections – must be in place. That's why we're excited to collaborate with Visa and our industry partners to bring Visa A2A to the UK. This milestone innovation will enhance payment experiences and deliver greater security and convenience to Nationwide members.' Delphine Emenyonu, Head of Unsecured Lending & Open Banking, TSB, said: 'We welcome the opportunity to collaborate on Visa A2A in the UK alongside Visa and other industry participants. As interest in A2A payments continues to grow among UK consumers and businesses, ensuring the right infrastructure, standards, and protections are in place will be key to supporting their future development. We look forward to seeing how this innovation can benefit TSB's customers.' Matthieu Barral, VP, Global Partnerships, said: 'Visa is changing how money moves with A2A payments, and is proud to be one of the first to bring this solution to merchants in the UK.' 'Together, we are giving merchants the latest option in market innovation, setting a new standard for speed, security, and payment performance.' Ian Burgess, Managing Director, Utilita, said: 'We're excited to continue our long-standing relationship with Visa as we embark on the A2A journey. We are keen to provide choice for our customers and the evolution to A2A only reinforces our continued leadership in the prepayment energy sector. The reassurance that Visa A2A provides in terms of card-like protection to both the merchant and the consumer was a key factor in our decision to partner with Visa on this initiative and we can't wait to adopt this within both our credit and prepay payment journeys.' Zak Lambert, Head of Product for Plaid Europe, said: 'This partnership brings together Visa's trusted rails and Plaid's open banking network to make paybybank as simple and secure as card on file. It's a new standard for how consumers and businesses move money—fast, protected, and ready to scale.' Alexey Gabsatarov, Chief Technology Officer, Kroo, said: 'Kroo Bank welcomes Visa's new A2A solution, an important step forward for both open banking and account-to-account payments. We view it as an inclusive, industry-led model that prioritises consumer protection, confidence and usability. Visa has already demonstrated the benefits of applying its card scheme expertise to A2A payments, and we look forward to deepening our partnership to increase choice and strengthen trust for consumers, businesses and the wider banking community.' Eline Blomme, Chief Product & Strategy Officer, said: 'We are incredibly enthusiastic about the future of A2A payments with Visa and discussing this with our industry peers. The collective expertise in this space is instrumental as we work to bring Variable Recurring Payments (VRPs) to the forefront of the UK market.' 'As a payments agnostic provider, powering recurring payments is at the heart of our business. Partnering with Visa A2A for VRPs represents a pivotal step forward in this area, unlocking unprecedented levels of security, flexibility and transparency for customers and offering a seamless alternative to traditional Direct Debit.' Colin Swain, Head of Product, Corporate Solutions, Bottomline, said: 'As a global leader in business payments, Bottomline is excited to explore new opportunities that help shape the future of how businesses pay and get paid. With a strong track record of simplifying the collection of both single and recurring payments, Visa A2A complements the growing shift toward real-time and instant payment methods for recurring use cases.' Myles Stephenson, CEO & Founder, Modulr, said: 'We're delighted to be part of the launch group of Visa A2A, working closely with Visa and other participants to drive forward the next phase of innovation in A2A payments. This is a significant step forward in implementing a sustainable, industry-leading solution, aligning with Modulr's commitment to provide seamless and secure payment experiences for customers.' Ian Morrin, Head of Payments, Tink, said: 'There is clear momentum behind pay by bank solutions in the UK market, so it's fantastic to see Visa spearheading innovation and industry collaboration with the development of Visa A2A.' 'This is a pivotal moment for fintech companies, like Tink, and banks to work together to provide enhanced account-to-account experiences for consumers and businesses alike.'
