Building the Future Together: A Collaborative Model for Next-Generation Payments Infrastructure
Issue 734: 16 July 2025
Building the Future Together: A Collaborative Model for Next-Generation Payments Infrastructure
Published in November 2024, the UK government’s National Payments Vision outlined a plan to build a world-leading payments ecosystem that fosters innovation, competition, and security, aligned with its Growth Mission.
To drive this, it established the Payments Vision Delivery Committee, supported by a Vision Engagement Group of over 30 industry representatives.
The Committee has endorsed a new collaborative model for developing the next-generation UK retail payments infrastructure, combining public and private sector expertise.
It also supports near-term improvements to the existing Faster Payments System, led by Pay.UK.
This new model has been informed by international comparisons, past UK experiences, and contributions from the Bank of England, Payment Systems Regulator and stakeholders.
This initiative complements the government's broader Financial Services Growth and Competitiveness Strategy, with ongoing coordination across authorities, especially ahead of the PSR's future integration into the Financial Conduct Authority.
You’ll find the Government’s policy paper here: Payments Vision Delivery Committee update.
A new collaborative model to design and deliver next-generation retail payments infrastructure
The new model is designed to redefine the responsibilities across the payments ecosystem, establishing clear roles for public authorities and industry participants to modernise the UK’s retail payments infrastructure and rapidly leverage next-generation technologies.
The update states that Pay.UK will maintain its essential role as the operator of existing systems.
A new collaborative model:
Source: UK Government
Within this model:
The Payments Vision Delivery Committee will set strategy for retail payments infrastructure
Over the next few months the PVDC will release its strategy for retail payments infrastructure, outlining priorities for next-gen infrastructure in line with the National Payments Vision's goals of innovation, competition, and security, while incorporating stakeholder feedback.
This will guide the Retail Payments Infrastructure Board, Delivery Company, and Pay.UK.
Additionally, the Committee will publish the Payments Forward Plan by the end of 2025, detailing a sequenced set of initiatives across both retail and wholesale payments, including the role of digital assets.
The Committee will retain a key role but will empower the Retail Payments Infrastructure Board to lead the design of next-gen infrastructure, following the strategy.
Over the coming months, the Committee will collaborate with the Vision Engagement Group to refine the strategy and plan, ensuring meaningful input from stakeholders, including end-users, as the model is implemented.
The Bank of England will set up and chair the Retail Payments Infrastructure Board to translate strategy into design
The Board, chaired by the Bank of England, will implement the Committee’s strategy through design work, including consultation with the wider ecosystem and end-users.
It will leverage the Bank’s operational role and infrastructure expertise to coordinate technical input and resolve issues.
The Board will operate transparently and report to the Committee.
Industry experts will lead the procurement and delivery of new infrastructure.
The Board will oversee the implementation of the design by a new industry-led Delivery Company, responsible for funding and procuring next-generation infrastructure.
This model ensures expert leadership at each stage, coordinated closely with Pay.UK, to enable a smooth transition.
The infrastructure will remain regulated by the PSR (and later the FCA) and the Bank of England.
Pay.UK will retain its fundamental role as operator of existing interbank payment systems
Under the new model, Pay.UK's role is focused on operating and maintaining current interbank systems to ensure resilience and effectiveness.
Its expertise will contribute across the model, including representation on both the Retail Payments Infrastructure Board and the Delivery Company.
It is intended that the Committee will set its strategy and establish the new model to progress activity at pace.
The Committee will publish its strategy for retail payments infrastructure in the autumn
The Committee emphasises that next-generation infrastructure must promote innovation, competition, security, and interoperability with current and emerging digital money.
The strategy will align with the broader authority objectives and the design phase of the proposed digital pound, which will consider the Committee’s work and broader payment trends in any future decisions.
The Bank of England will work at pace to establish the Retail Payments Infrastructure Board and support the industry-led Delivery Company
The new model ensures next-generation infrastructure aligns with the National Payments Vision, with design and delivery led by technical experts from the Bank of England and industry, under the Committee's oversight.
The Bank will now work with the ecosystem to set up new structures, including the industry-led Delivery Company.
Vim Maru (Barclays UK CEO) will serve as chair designate of the Delivery Company, working with the Bank to define its relationship with the Board.
Formal board appointments and an appointment process for the Retail Payments Infrastructure Board are underway, with its first meeting planned for October.
You’ll find the Government’s policy paper here: Payments Vision Delivery Committee update.
Subscribe
