Cicero Policy Briefer

Issue 20, January 2008

Introducing the UK Payments Council

By Paul Smee, Chief Executive, APACS and the UK Payments Council

Last March, the UK Payments Council was formed. It has three core objectives: to lead the future development of co-operative payment services in the UK so that the payment system meets the needs of users, payment service providers and the wider economy; to ensure that the payment system is open, transparent and accountable; and to ensure the operational efficiency and effectiveness of UK payment services.

The body is industry-led but its governing board includes four independent directors alongside 11 senior directors from financial institutions. In addition, it has an independent chairman, Brian Pomeroy.

Payments matter to all of us; without an efficient and reliable means of making payments, economic life would grind to a halt. So the future development of payments should also concern us all.

The Council has recently issued a consultation paper, which is the first step on the road to producing a National Payments Plan.

We are looking for a wide-ranging debate on how best the payment needs of all categories of user—wholesale, corporate and consumer—can be addressed over the next five to 10 years. The consultation paper is available at www.paymentscouncil.org.uk. It deliberately asks open questions and it covers a wide range of payment topics—from the possible exploitation of innovative forms of making payments, such as mobile telephony, to the future of the more traditional instruments, such as cheques. We also tackle general issues such as security, fraud prevention and financial inclusion.

From the responses which we receive, the Council will identify where collaborative work within the payment system can produce the best outcome; and it will then draw up a plan to deliver this. Payments are a little different from other parts of economic life. For payments to work efficiently, there has to be some element of co-operation between participants. This helps create common standards by which payments are made and it avoids constraints on the reach of payment schemes. The plan will help define where that co-operation should occur.

The Council is committed to functioning in an open, consultative and transparent way. We are not just holding this consultation: we have also already set up three user forums, each chaired by an independent director, which cover Government and large users; small and medium-sized enterprises; and consumers. The input of these bodies has been invaluable in helping us set the right questions to ask.

Paul Smee is the Chief Executive of the Payments Council and the UK Payments Association (APACS) and can be contacted here.