TPL believes Britain will retain its leadership position in payments technologies and remain an attractive market for payments issuers.
- Highly developed market: The country is home to a growing (and sophisticated) market of 67 million digital-savvy consumers, backed by a forward-thinking regulator. It is also quick to adopt fast-developing payment trends, such as “soft point of sale” (POS) and mobile POS systems to enable wider acceptance for electronic payments, especially in the growing micro-merchant segment, as well as the use of QR code payments due to COVID-19.
- Beyond Europe: Meanwhile, despite concerns relating to Brexit, a recent annual planning paper from the Payment Systems Regulator (PSR) suggests the UK may be about to pursue a strategy of “smart divergence” from EU legislation. This would give the UK flexibility to follow EU rules where it’s in their interests to do so, but also to diverge for commercial benefit. This could lead to opportunities for British payments firms outside Europe, including in Australia and Canada, which share similar legal systems and are exhibiting many of the same market characteristics.