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UK Payment Services Regulations

United Kingdom

2017

Consumer Protection

Overview

The UK Payment Services Regulations 2017 (PSRs) implement PSD2 requirements into UK law, establishing a robust framework for payment service providers. These regulations mandate transparency, security, and consumer protection, applying to banks, fintechs, payment institutions, and other regulated entities. Compliance requires regulatory expectations across bordersdigital onboarding solutions that integrate regulatory requirements seamlessly.

The regulations apply to banks, building societies, fintechs, payment institutions, e-money firms, and other regulated entities offering payment services. They cover areas such as licensing, conduct of business, open banking, customer rights, and dispute resolution.

Key Obligations

Obtain authorization or registration from the FCA to provide payment services
Ensure transparency in fees, exchange rates, and transaction terms
Comply with strong customer authentication (SCA) and security protocols

Provide timely execution and settlement of payment transactions
Facilitate user access to data via open banking APIs
Handle complaints within regulatory timelines and offer redress

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Related Regulations

PSD2 Payment Services Directive

FCA Consumer Duty Regulation

EFTA Reg E Payment Regulation

FAQ

Who regulates payment services in the UK?

The Financial Conduct Authority (FCA) regulates all payment service providers under the UK PSRs.

Does PSD2 still apply in the UK after Brexit?

PSD2 was transposed into UK law via PSRs 2017. While the EU directive no longer directly applies, its principles remain embedded in UK law.

What is strong customer authentication (SCA)?

SCA requires multi-factor authentication to reduce fraud for online and electronic payments.

Are open banking APIs mandatory?

Yes. Regulated firms must provide access to customer data via secure APIs to authorized third-party providers, subject to user consent.