The UK Treasury has concluded a public consultation on the proposed consolidation of the Payment Systems Regulator (PSR) within the Financial Conduct Authority (FCA), aiming to streamline the country’s payment system oversight. This follows the government’s March 2025 announcement of plans to merge the PSR into the FCA to create a more coherent framework for UK payment regulation. The consultation period ran from 8 September to 20 October 2025. Official consultation details are available from the UK government.
Key objectives of the reform:
- Reduce the number of regulators overseeing payment systems
- Simplify regulatory reporting for payment firms
- Support ongoing innovation and competition in the payments sector
- Lower regulatory costs and provide clearer, more proportionate supervision
Under the proposal, the FCA will assume all PSR responsibilities, including promoting fair competition and transparency in UK payment systems. The government has stated it intends to introduce legislation once parliamentary time allows, seeking to make regulatory conditions more efficient and accessible for companies operating in this space. Industry feedback was invited until 20 October 2025, with the goal of ensuring that any changes support both consumer protection and market growth.
| Main Change | Expected Benefit | Timeline |
|---|---|---|
| PSR merges into FCA | Unified supervision, less complexity | Legislation to be introduced post-consultation |
| FCA leads payment system regulation | Clarity for payment firms and consumers | Implementation date subject to parliamentary schedule |
This move is intended to foster a regulatory environment where innovation can thrive while regulatory burdens are reduced for both established operators and new entrants. For online casino players and payment method users, such changes may translate to improved service efficiency and a more competitive payments landscape.
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