An independent review of UK payment infrastructure governance has recommended the creation of a single oversight body to replace the current fragmented structure in which Pay.UK operates retail payment systems while the Bank of England oversees wholesale and systemic clearing. The review, led by former Prudential Regulation Authority board member Baroness Bowles, concluded that the division of responsibilities had contributed to delays in modernising critical infrastructure, including the long-running New Payments Architecture programme. The report recommended establishing a new statutory entity, provisionally titled the UK Payments Authority, with powers to set standards, enforce resilience requirements, and coordinate investment across all interbank payment systems.

The Treasury commissioned the review in mid-2025 following sustained criticism of Pay.UK's governance and the repeated delays to the NPA. Under the proposed model, the UK Payments Authority would absorb Pay.UK's operational functions while maintaining the Bank of England's systemic risk oversight role through a formal memorandum of understanding. The review estimated that the consolidated approach could save the industry between £120 million and £180 million annually in duplicated compliance and coordination costs. UK Finance, the banking trade body, offered cautious support for the proposal, though it noted that the transition would need to be carefully managed to avoid disrupting existing payment services.

Not all stakeholders welcomed the recommendations. Several fintech trade groups, including Innovate Finance, expressed concern that a single powerful regulator could slow innovation and favour incumbent institutions. The review acknowledged this risk and proposed the inclusion of dedicated fintech and consumer representation on the new authority's board. HM Treasury said it would consult on the proposals through the spring, with draft legislation potentially included in the next parliamentary session. The outcome will have significant implications for the shape of UK payment regulation for decades to come.