The Bank of England has published its response to the Retail Payments Infrastructure Board (RPIB) consultation on the design of the UK's Next Generation retail payments infrastructure. Respondents said they wanted renewal to be done at pace, while getting the design and delivery choices right. The consultation marked an important step in translating the Payment Vision Delivery Committee (PVDC) Strategy into a high-level infrastructure design. It sought views on:
- The future payment journeys that the infrastructure should support for households and businesses;
- The principles that should guide its design; and
- Its role as a 'platform for innovation' across the payments ecosystem.
Respondents broadly supported the consultation's direction and its five intended outcomes:
- Greater choice of innovative and cost-effective payment options;
- Interoperability across a multi-money ecosystem;
- Protection from fraud and wider financial crime;
- Fair and transparent access that supports competition and innovation; and
- An operationally and financially resilient payments ecosystem.
The payment journeys, design principles and conceptual architecture were seen as a strong foundation for the Blueprint. The Blueprint is a high-level design document that will form the basis for elaboration of detailed design work and procurement processes.
But important questions remain: where should the boundary between core infrastructure and other services fall? How will interoperability work with new forms of digital money? And how can the design address fraud, protect consumers and minimise migration risks? The RPIB and the Design Authority will develop the high-level design through collaboration and co-creation with industry groups and other key stakeholders.
Respondents also highlighted issues extending beyond core infrastructure design: adoption of new payment journeys, access principles for participants, commercial sustainability of the infrastructure and products, scheme design, ecosystem roles and responsibilities, and financial inclusion.
A thin core, but where should the boundaries lie?
The consultation proposed design principles for the core infrastructure and a 'layered' architecture for the wider payments ecosystem, with the core acting as a platform for innovation. A central question was whether the architecture drew the right boundaries between services within and beyond the core.
Respondents broadly supported this approach as a foundation for further design. They placed particular emphasis on operational resilience and cybersecurity, including the challenges posed by AI and developments in frontier technologies.
Across respondent groups, the preference was for a relatively thin core: one providing messaging, clearing, shared services and settlement coordination, while leaving room for private sector innovation and competition. Views differed, however, on just how thin the core should be and where particular capabilities should sit. Respondents identified fraud prevention, data sharing, directories and alias services as shared services that could deliver ecosystem-wide benefits.
The trade-off is significant. Some respondents warned that fragmented provision outside the core could weaken resilience or interoperability. Others stressed that common provision must not restrict competition, impose onerous costs or create barriers to innovation.
Respondents also called for clear priorities for the build and careful assessment of the costs and benefits of design choices. Value for money and commercial viability will matter throughout the infrastructure's lifetime. Different payment journeys may also require different balances between speed, resilience, scalability and cost.
Interoperability, trust and a managed transition
There was strong support for interoperability between different forms of money at par, alongside the wider enablers needed to support broader interoperability.
Trust, fraud prevention and consumer protection were also fundamental themes.
Respondents strongly supported the proposed payment journeys, while highlighting the need to consider a fuller picture of current and future payment needs over time.
When it comes to the transition itself, respondents favoured a phased migration that recognises and manages the implications for the wider ecosystem.
Next steps: from consultation to Blueprint
The consultation responses and wider engagement will inform the next phase of the RPIB's work: developing the Blueprint for the UK's Next Generation infrastructure.
The RPIB has considered how to build on existing public–private sector collaboration to take the proposals into high-level design. The key milestone is the handover of the Blueprint to the industry-led Delivery Company in Spring 2027, enabling further detailed design and delivery of the core.
The RPIB and the Bank will continue structured engagement to inform, test, challenge and refine the emerging design.
