The New Payment System Operator (NPSO) has taken over running and managing the cheque paper and cheque image clearing systems at the same time that the Cheque and Credit Clearing Company has become a subsidiary of the NPSO.

All payments will continue to be processed as usual through the paper clearing system for cheques and the recently launched Image Clearing System, which speeds up the process by enabling digital images of cheques to be exchanged between banks and building societies for clearing and settlement.

The NPSO has also acquired UK Payments Administration (UKPA), the service company responsible for providing people, facilities and business services to the payment ecosystem.

This completes the consolidation of the UK’s retail payment systems, after the NPSO took responsibility of Bacs Payment Schemes and Faster Payments Scheme at the start of May.

Paul Horlock, NPSO chief executive, commented: “This is our opportunity to create the future of retail payments in the UK, driving value for people and businesses and enabling a vibrant UK economy.

“UKPA plays a pivotal, behind-the-scenes role in helping to ensure the smooth running of the UK’s payment systems and we are delighted to welcome on board its personnel, who bring with them a wealth of knowledge and experience,” he added.

Last week, NPSO chair Melanie Johnson announced plans to update the underlying payments infrastructure, with a procurement process being worked on for the new architecture that is scheduled for delivery in around four years.

“We must consider how we future proof the platform, as we are committed to assuring transition goes to plan,” Johnson stated, adding that the API specifications for mobile payment systems Paym will be published later this year.

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