By designing the core of the New Payments Architecture (NPA) to focus on the central task of securely and efficiently clearing and settling payments, the NPSO will set the foundations for fintechs, banks and other providers to innovate and develop competitive ‘overlay services’ which can link directly and indirectly to the clearing and settlement infrastructure. Overlay services will not necessarily be confined to a rigid, centrally-defined model and will therefore have space to develop organically.
Many of these end user deliverables will be provided directly by the market, with the NPSO’s role being to catalyse the market by developing rules and standards that can help innovation thrive.
Two of the first improvements being delivered for end users are Confirmation of Payee, which will let payers check who they are paying before they pay them, and Request to Pay which will create a new flexible way to settle bills between families, friends, organisations and businesses.
Confirmation of Payee and Request to Pay are both being developed using API (‘application programming interface’) technology, which offers a secure way of sharing data, and ensures the customer can stay in control.
A roughly equivalent example of these overlay services would be the way that Google Maps allowed controlled access to its data through APIs, and in so doing created opportunities for everything from ride-hailing apps such as Uber to games like Pokemon GO. So, the NPA could lead to new ways for customers to get more out of their banking and payment data, as well as, in all likelihood, things that haven’t even been thought of yet.
Find out more about our approach to rules and standards for the NPA here.
The NPA will also deliver improvements that offer users Enhanced Data and help to tackle Financial Crime. We will be publishing more information about these initiatives in due course – email firstname.lastname@example.org if you would like more information.