On 10 March 2016, the Payment Systems Regulator (PSR) published a report setting out its interim findings from its market review into competition in the supply of indirect access to payment systems. For more information on the subject matter of the review see our in-depth briefing: PSR confirms terms of reference and timetable for its first market review into indirect access.
The PSR’s interim findings conclude that competition is working sufficiently well to produce good outcomes for indirect PSP’s and their customers. However, the PSR has identified particular areas of concern where competition is more limited and can result in unfavourable outcomes, such as:
- issues with the quality of service all indirect PSPs receive for indirect access
- the limited choice of IAPs, which particularly affects small non-agency indirect PSPs
- barriers preventing all indirect PSPs from switching to alternative providers.
It proposes to keep these issues under review for the next 12 months.
What this means for you
The PSR appears to consider that there is sufficient entry and expansion in the market to address its concerns. The interim report is now open for consultation and will remain open until 5 May 2016. The final report will be published in summer 2016. Should the PSR decide, either at final report stage or beyond, that regulatory intervention is required, it will need to consult on such proposals.