The UK’s Payment Systems Regulator (PSR) has proposed changes to the country’s payment systems infrastructure procurement in order to boost competition.

The proposals come following a review conducted earlier in 2016 into the ownership and competitiveness of the infrastructure supporting the country's three three interbank payment systems – Bacs, Faster Payments Service (FPS) and LINK.

The regulator identified the common ownership and control of both the payment systems and the infrastructure provider as a key concern after the review.

The proposed changes include a competitive procurement process to allow new entrants with different technology enter the market and drive innovation.

The regulator also highlighted the need to implement a common international messaging standard for Bacs and FPS to encourage new players.

PSR managing director Hannah Nixon said: "The remedies we are putting forward today are another step in our strategy to bring about a once in a generation change to UK payments. The work being undertaken will help open up the payments industry and promote more effective competition and innovation to help all users of payment systems – be they consumers, small businesses, or banks.

“The measures we proposed, together with a change of ownership of VocaLink, will remove barriers and create a competitive procurement process, opening up central infrastructure to competition.”