The Payments Vision Delivery Committee has published its strategy to guide the development of future UK retail payments infrastructure in line with the government's National Payments Vision (NPV) which was published in November 2024.

The Committee comprises the Bank of England, the FCA and the Payment Systems Regulator and is chaired by HM Treasury.

The Strategy is set against the background of a rapidly changing UK and global payments ecosystem. In the UK this is caused by the accelerating adoption of digital transactions, the prevalence of card-based payments and the popularity of mobile and e-wallets. At the same time, the use of cash and cheques continues to decline, but is still vital for many. New digital forms of money such as stablecoins and tokenised deposits, and innovations in the use of platforms that support programmable payments, including those based on Distributed Ledger Technology, may transform how payments are made and received.

The Strategy is informed by, and builds upon, the three pillars of the National Payments Vision: innovation; competition and security.  The Committee seeks the following five outcomes:

• Consumers and businesses have a greater choice of innovative and cost-effective payment options that meet their needs.
• Payments operate seamlessly as part of a diverse multi-money ecosystem, with interoperability between new and existing forms of digital money.
• Consumers and businesses can trust that their payments are protected from fraud and wider financial crime.
• Participant firms have fair, transparent and non-discriminatory access to the infrastructure –maximising competition and scope for innovation across the payments ecosystem.
• The payments ecosystem is operationally and financially resilient.

The Strategy sets out long-term goals for the UK's retail payments infrastructure. The Committee wants to see a renewed retail payments infrastructure in support of the NPV, alongside a smooth and safe transition that serves users and maintains trust in the system.

The Committee's priority is for the next generation infrastructure to deliver so-called 'account-to-account' functionality at point of sale, to enable greater choice of payment methods. Supporting innovation –including programmable payments, tokenised deposits, and stablecoins – is also crucial.

Pay.UK, the operator of the retail interbank payment systems, has a vital role to play. It continues to run and maintain the resilience of these critical systems, whilst also taking action to ensure they can best serve the ecosystem of today, and bridge to the ecosystem of tomorrow. In this context, important work on short-term enhancements to the current Faster Payment System and the Bacs Payment System is in train, with a view to improving resilience and better supporting innovation.

The Committee also says that infrastructure should also take account of the Bank and HM Treasury's plans for a digital pound.