The UK Payment Systems Regulator (PSR) has confirmed it will revoke Specific Direction 4 (SD4) and Specific Direction 4a (SD4a) for the LINK ATM network on 25 August 2025, and Specific Direction 2 (SD2) and 2a (SD2a) for Bacs on 27 August 2025. The move follows LINK’s request in June 2024 to withdraw these regulatory requirements and a public consultation (CP25/2) in June 2025. The changes are intended to enhance flexibility for Pay.UK and LINK, allowing greater focus on innovation, investment, and the delivery of resilient retail payment infrastructure as part of the UK’s National Payments Vision.
SD4 and SD4a were originally introduced in June 2017 to ensure competitive tendering for LINK’s central infrastructure, requiring contracts covering services from October 2031 onwards to be procured on a competitive basis. This policy led to a completed tender process, resulting in Vocalink being awarded the infrastructure contract in October 2021. Following this, LINK proposed that the direction was no longer necessary for long-term sustainability and operational efficiency.
The PSR’s decision is expected to:
- Allow LINK and Pay.UK to respond more effectively to future market needs and retail payment innovation
- Reduce administrative burdens related to competitive re-tendering processes
- Maintain ongoing regulatory oversight in collaboration with the Bank of England, FCA, and CMA to manage systemic and competition risks
The regulator states that the revocation creates a more flexible environment for updating payment infrastructure while supporting competition and economic growth. However, the PSR emphasises it will continue to monitor market conditions, network efficiency, and resilience to ensure statutory objectives are met. Further details can be found in the official PSR policy statement: PSR Policy Statement.
| Revoked Direction | Network | Effective Date |
|---|---|---|
| Specific Direction 4 / 4a | LINK | 25 August 2025 |
| Specific Direction 2 / 2a | Bacs | 27 August 2025 |
For further reading on UK payment systems and withdrawals, see:
