Modernising Payment Services Regulation

Having a strong and vibrant payments sector is vital for economic growth. The UK’s payment services regulatory framework has played a crucial role in cementing the UK’s role as a leader in payments.

However, the pace of innovation in payments is moving fast. Careful consideration must be given to how the regulatory framework should be updated to account for innovations in tokenised payments, Open Banking and agentic payments.

This consultation sets out the government’s approach to modernising payment services regulation and seeks views on how regulation needs to adapt to support innovation whilst ensuring strong consumer protections.