PSR to explore use of data in payments industry
Written by Hannah McGrath
The Payments Systems Regulator (PSR) has announced that it is to explore opening up access to data in the UK’s new payments architecture.
The UK’s economic regulator for payments has released the findings of a report on the use of data in the payments industry, finding that there are a “number of areas where the industry needs to manage key issues” in managing the large volumes of data that flow through payments systems every day.
Last year the regulator invited feedback from the industry to help it to understand the emerging issues in payments data and see if there was a need for a regulatory role.
A statement outlining the purpose of the report explained: “Every time someone makes an electronic payment, whether by card in a shop or online, they generate data. This data is an important part of the UK payments industry.”
As a result, the regulator has set out plans to work with Pay.UK, the operator of the Bacs, Faster Payments and Cheque and Credit payment systems, to explore the use of synthetic data in the development of new payment services.
The PSR has also announced that it will work with Pay.UK to explore the viability of opening up access to data in the UK’s new payments architecture (NPA), which is intended to take over from BACS, cheques and Faster Payments.
The PSR hopes the collaboration will benefit consumers and businesses through the development of new products and services, such as anti-fraud and anti-money laundering tools and improved payment reconciliation services.
Chris Hemsley, managing director of the PSR, said: “This is an exciting time for payments and having access to data is an incredibly useful way of helping develop new initiatives, products and services for everyone. But individuals’ privacy also needs to be respected.”
He added: “The creation of synthetic data within the new payments architecture has potential to support new services and innovation, and to help make further inroads in tackling financial crime. We’re looking forward to seeing how the industry takes these initiatives forward, while keeping people’s data safe and secure.”