The UK’s Payment Systems Regulator (PSR) is to be abolished in the government’s latest step to reduce the burdens on business.

The PSR, which looks after payment systems like Faster Payments and Mastercard, will mainly be consolidated into the Financial Conduct Authority (FCA), making it easier for firms to deal with one port of call.

It follows complaints from businesses that the regulatory environment was too complex—with payment system firms having to engage with three different regulators, and therefore costing them time, money, and resources.

The step change will have a greater impact on smaller businesses that are trying to scale and grow however, as the costs are disproportionately higher for them.

“The regulatory system has become burdensome to the point of choking off innovation, investment and growth,” commented chancellor Rachel Reeves. “We will free businesses from that stranglehold.”

The government said that today’s announcement won’t result in any immediate changes to the Payment Systems regulator’s remit or ongoing programme of work, and it will continue to have access to its statutory powers until legislation is passed by Parliament to enact the changes.

In the interim period, the PSR and FCA will work together to deliver a smooth transition of responsibilities and to ensure the market remains competitive.

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Nikhil Rathi, the chief executive of the FCA, remarked: “With a changed payments landscape, now is the right time to put in place a more streamlined regulatory framework.

“Doing so is a natural next step following recent work to improve co-ordination and clarity on regulatory responsibilities.

“We will work closely with government, the Bank of England and the payment sector as the details of this change are decided and to ensure the transfer of any powers is smooth.

“In the meantime, we will drive forward with change, including welcoming the deep expertise of PSR colleagues within the FCA.”