PSR calls for feedback on data in payments
Please send responses
The UK’s Payment Systems Regulator (PSR) has launched a discussion paper about data in the payments industry and wants your views on its future shape.
Hannah Nixon, managing director of the PSR, says: “The UK’s payments sector is rapidly evolving and data is becoming increasingly important. Every time you make a payment or withdraw money, you generate data. That’s why we’re looking to understand what actions we might need to take in the future around the use of data in payment systems.”
According to the PSR, the way such data is collected, used and shared presents opportunities and risks for payment service providers (PSPs) and the people and organisations that use these systems.
It could, for example, create new business models and improve access or enhance the detection of financial crime and strengthen protections.
On the other hand, the increased commercial use of data could influence how companies gain competitive advantage, “which could have implications for end users in terms of the range or quality of services offered”.
As a result, the regulator, as it often does, is keen to understand the opportunities and risks.
The PSR is considering three key areas:
- Some people may have concerns about sharing the data attached to their payments with third-party companies providing other related services (or overlay services). This could slow the development of products and services, meaning people using systems may be less likely to see the benefits;
- Potential providers of new services may have limited access to data about transactions across a whole system (global datasets), including data that may help develop new ways to fight fraud and other financial crimes within the system;
- There are potential barriers that could stop consumers and businesses getting the benefits from additional “enhanced” data attached to transactions. This data could make processing payments cheaper and more efficient, leading to cheaper services.
The full discussion paper can be found on the PSR website. You can give feedback there as well.
The deadline for providing views is 5pm on 3 September 2018.
