MR 22/1.1 Market review of card scheme and processing fees. MR 22/2.1 Market review of UK-EEA consumer cross-border interchange fees. Innovate Finance response to the PSR consultations and terms of reference
About Innovate Finance
Innovate Finance is the independent industry body that represents and advances the global FinTech community in the UK. Innovate Finance’s mission is to accelerate the UK's leading role in the financial services sector by directly supporting the next generation of technology-led innovators.
The UK FinTech sector encompasses businesses from seed-stage start-ups to global financial institutions, illustrating the change that is occurring across the financial services industry. Since its inception in the era following the Global Financial Crisis of 2008, FinTech has been synonymous with delivering transparency, innovation and inclusivity to financial services. As well as creating new businesses and new jobs, it has fundamentally changed the way in which consumers and businesses access finance.
Introduction and key points
Innovate Finance welcomes the opportunity to respond to the PSR’s consultations on the draft terms of reference in relation to the proposed market reviews into scheme and processing fees and cross-border interchange fees.
In preparing this response, we have consulted with our FinTech start-up and scale-up members that span the issuer and acquirer sides of the discussion. Based on engagement with our members, it is clear that there is currently not a consensus on the best approaches to be taken by the PSR. However, all members are in agreement that these issues are of critical importance to industry, and there is a need to avoid unintended consequences for innovators in the market.
In light of the above, Innovate Finance would urge the PSR to engage further with the FinTech community. We would be happy to facilitate member roundtable discussions and / or wider engagement with the FinTech community.