Britain's government announced on Tuesday its decision to dissolve the Payment Systems Regulator (PSR) and integrate its responsibilities into another financial regulatory body in order to streamline processes and foster growth.
The PSR, which supervises payment systems like MasterCard and bank transfers, addresses issues such as fraud, high fees, and limited competition among banks and payment service providers.
The move to eliminate the PSR was prompted by complaints from businesses about the complexity of the UK's financial regulatory framework, which currently involves three regulators: the Financial Conduct Authority (FCA), the Bank of England's Prudential Regulatory Authority, and the PSR.
The government plans to merge the payments oversight functions into the FCA, simplifying interactions for businesses and cutting costs, particularly for small companies looking to expand.
Prime Minister Keir Starmer emphasized that this decision is part of efforts to stimulate economic growth.
Finance Minister Rachel Reeves, striving to fulfill Starmer's 2024 economic growth target, stressed the need for policies that support businesses without excessive burdens. This comes after a disagreement with the chairman of the Competition Markets Authority over strategies to accelerate the country's economy.
Reeves highlighted that the current regulatory system in the UK is stifling innovation, investment, and growth.