As the dust settles post-Brexit, leading UK payments organization Payments UK has warned that in the medium to long term a move to leave Europe would have a massive impact on UK payments, not least those on mobile.
According to the trade body, in the short term it remains business as usual, however things could change radically down the line, with legislative and structural changes likely to affect the way in which UK payments are regulated, designed and executed.
“Currently, much financial regulation applicable in the UK is derived from EU legislation,” says Jemma Smith, Director of Communications and Education, at Payments UK. “This regulation will remain applicable until any changes are made, which will be a matter for Government and Parliament. The payments industry is committed to work with government, regulators and other stakeholders to limit any impact on customers and on the vital payments infrastructures that are at the heart of the British economy.”
Smith continues: “The role of Payments UK is to support the industry in such important discussions and to ensure it is kept abreast of, and able to respond to, emerging developments. In this regard the referendum decision will need to be carefully considered by the industry from purely a payments perspective. Any changes ultimately required within the UK payments industry as a result of today’s decision will also need to be scheduled and prioritised into existing industry long-term strategic planning.”
In the meantime the FCA has confirmed that “firms must continue to abide by their obligations under UK law, including those derived from EU law and continue with implementation plans for legislation that is still to come into effect” and also that “consumers’ rights and protections, including any derived from EU legislation, are unaffected by the result of the referendum and will remain unchanged unless and until the Government changes the applicable legislation”.