Payments Council
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| Payments Council | |
|---|---|
| Name | Payments Council |
| Formation | 2007 |
| Predecessor | Association for Payment Clearing Services |
| Dissolution | 2015 (superseded) |
| Type | Trade association |
| Headquarters | London, United Kingdom |
| Region served | United Kingdom |
| Leader title | Chief Executive |
| Leader name | Chris Hamilton |
| Website | (defunct) |
Payments Council
The Payments Council was a United Kingdom industry body representing Barclays Bank, HSBC, Lloyds Banking Group, Royal Bank of Scotland Group, and other payments providers in matters relating to retail and wholesale payment systems. It emerged from predecessor organisations involved in clearing and settlement, engaging with institutions such as the Bank of England, Financial Conduct Authority, Her Majesty's Treasury, European Central Bank, and influential standards bodies. The Council coordinated stakeholders across the City of London financial cluster and major payment schemes like Bacs, CHAPS, and the Faster Payments Service.
History
The organisation formed through consolidation of legacy entities that managed clearing and settlement arrangements in the post-Big Bang (1986) era of UK finance, inheriting roles formerly held by the Association for Payment Clearing Services and industry committees that navigated reforms after the Financial Services Act 1986. During the 2000s the Council engaged with policy responses to the 2007–2008 financial crisis, working alongside the Bank of England and European Banking Authority on resilience and liquidity issues. In the early 2010s it spearheaded initiatives on remittance modernisation, interoperability with SEPA frameworks, and adoption of ISO 20022 messaging standards influenced by the Society for Worldwide Interbank Financial Telecommunication and International Organization for Standardization.
Structure and Governance
Governance incorporated representatives from major clearing banks, building societies, payments processors, and card schemes such as Visa Inc. and Mastercard. Executive oversight reported to a Board comprising senior executives from institutions like NatWest Group, Santander UK, and nonbank participants including PayPal Holdings. Technical working groups interfaced with the Office of Fair Trading (prior to its dissolution), the Competition and Markets Authority, and regulatory committees at the European Commission. The secretariat function sat in central London near the Gherkin and coordinated with law firms, consultancy practices, and professional bodies such as the Chartered Institute of Bankers.
Functions and Activities
Operationally the Council acted as an industry voice on clearing, settlement, and retail payment services, promoting initiatives across direct debit, standing orders, real-time payments, and card acquiring. It produced strategy papers influencing the development of the Faster Payments Service and modernization of legacy systems used by Bacs Payment Schemes Limited and Cheque and Credit Clearing Company. The body convened technical committees, organised conferences with participants from SWIFT, card networks, central counterparties like LCH Ltd, and coordinated testing of interoperable services with telecommunications providers and major retailers including Tesco and Sainsbury's.
Regulatory Role and Policy Influence
Although not a statutory regulator, the Council exercised substantial policy influence through consultations with the Bank of England and Financial Conduct Authority on standards for operational resilience, anti-money laundering alignment with the Money Laundering Regulations 2007, and responses to directives from the European Parliament on payment services, notably the implementation trajectory related to the Payment Services Directive. It submitted position papers to parliamentary committees and engaged in joint working groups with the Payments Systems Regulator after the latter’s establishment, shaping access, interoperability, and interchange fee debates involving Visa Inc. and Mastercard.
Membership and Funding
Membership comprised major retail banks, building societies, card firms, and third-party processors including Worldpay Group, Equifax, and telecom-backed payment initiatives. Funding came from member subscriptions, event revenues, and commissioned research produced in collaboration with consultancies such as Deloitte, PwC, and Accenture. Membership tiers reflected provider scale and participation on committees, while associate relationships existed with academic units at institutions like the London School of Economics and University of Oxford for research on payment innovation.
Criticisms and Controversies
The Council faced criticism over perceived industry capture and decisions that critics argued privileged incumbent banks over fintech entrants and consumer groups. High-profile disputes arose around proposals to phase out cheque usage and the handling of bank branch closures, drawing scrutiny from MPs on the Treasury Select Committee and consumer advocates including Which? and Citizens Advice. Debates over transparency, competition, and interchange fee structures involved interventions by the Competition and Markets Authority and legal challenges referencing provisions of the Competition Act 1998. The organisation’s role and remit were reassessed amid regulatory reforms, leading to its functions being integrated into successor forums and the Payments Systems Regulator framework.