PSR Targets Card Fees, APP Fraud and Payments Reform

The Payment Systems Regulator (PSR) has set out an ambitious agenda for 2026/27, with card fees, APP fraud and wider payments reform at the centre of its annual plan. Published on 26 March 2026, the programme signals a regulator intent on pushing ahead where competition remains weak, while maintaining strong consumer protections and supporting the next phase of innovation in UK payments.

A major priority is card fees, where the PSR plans to press on with action over both cross-border interchange fees and domestic scheme and processing fees. This is significant for businesses that have long argued that rising card acceptance costs are eroding margins and limiting choice. By targeting areas where the regulator believes markets are not working well, the PSR is making clear that pricing and competition in card payments will remain under close scrutiny in the year ahead.

APP fraud also remains high on the regulatory agenda. The PSR has committed to continuing its work on mandatory reimbursement, including publishing and responding to the independent evaluation of the policy’s first year. That matters because the reimbursement regime has been one of the most consequential recent interventions in UK payments, reshaping how firms manage fraud risk, customer outcomes and operational accountability. The regulator’s emphasis now is on assessing whether firms are meeting the standards expected of them and whether the regime is delivering the intended results.

Beyond fraud and fees, the annual plan shows the PSR positioning itself as a central player in the broader reform of UK payments infrastructure. It will continue working with the Bank of England, FCA and HM Treasury through the Payments Vision Delivery Committee to oversee the delivery of critical payments infrastructure. That places the regulator within the wider effort to modernise the UK payments landscape and support the National Payments Vision, with a focus on resilience, competition and long-term market effectiveness.

Open banking is another key area of focus. The PSR said it will support the next phases of development, including work to establish a long-term regulatory framework and future oversight arrangements. This suggests that open banking is moving from a growth and experimentation phase towards a more durable regulatory model, one designed to give firms greater certainty while supporting competition and innovation across payment services.

The plan also underlines a more integrated supervisory approach. The PSR intends to strengthen supervision and enforcement while aligning more closely with the FCA. That is particularly relevant as the regulator prepares for consolidation into the FCA, a process that has raised questions across the market about continuity, oversight and operational certainty. The PSR is clearly trying to reassure regulated firms that, despite institutional change, expectations will remain clear and the market will continue to function with confidence.

David Geale, managing director of the PSR, framed the year ahead around continuity as well as reform, pointing to the need to protect those who rely on payment services while still supporting innovation and competition. Chair Ashley Alder similarly stressed certainty for firms, consumers and businesses as the organisation prepares for future regulatory changes.

Taken together, the 2026/27 annual plan presents a regulator focused on practical market issues with direct commercial and consumer impact. For payments firms, banks, card schemes, acquirers and fintechs, the message is straightforward. The PSR is not stepping back during transition. It is pressing ahead on card fees, APP fraud, open banking and infrastructure reform, while seeking to provide greater clarity as the UK payments regulatory framework evolves.

Read the press release here.