Brexit impacted a lot of aspects of the UK and Europe, but did you know that it will affect transfers and payments as well? Well, here is a quick look at how Brexit will impact payments and transfers from now on.
Different Rules and Regulations
The UK used to follow the same rules as EU for most cross-border payments. However, that will definitely impact the payment methods for people because of Brexit. For instance, NationalPayCorp’s methods for an international transfer for the EU will likely be different if you want to send money to the UK because they will have a new set of regulations. Therefore, payment providers and other transfer companies will need to adapt to the new set of rules to appropriately make transfers and payments.
Difficulty Getting Staff Because of Payments
Many people worked in the UK from the EU, but since the UK is not a part of the EU anymore some standards for “foreign” staff have changed. For instance, it is more difficult to get a working visa in the UK if you are from Europe, compared to how it used to be. The requirements are a lot tougher, and some requirements include: having a certain English speaking level and earning more than 25,600 pounds in the existing job offer. Therefore, the payments industry may find it much more difficult to employ their usual number of “foreign” staff due to these requirements.
Different Regulations for User’s Protection
The UK used to follow regulations for SEPA, where economic agents, businesses, and consumers follow certain rules to make and receive payments. However, this EU law will not have to apply to the UK anymore, which may be troublesome for businesses and customers. Payment service providers in the UK would not have to follow certain EU laws, so it’s consumers may not have the same protection that they used to have.
Bank Account Problems
People from the EU who have UK bank accounts were allowed to keep them during the transition period. However, would get subject to UK legislation. Therefore, they may need to add requirements or open a new bank account in the UK if they want to have a UK bank account. Again, the EU law will not apply to different banking services. Therefore, the EU’s transparency rules about fraud prevention, consumer protection, and transparency will not be applicable to credit cards anymore.
Potential for the UK to Enhance It’s Payment Methods
While some of the mentioned changes may pose issues to some people, it is also possible that the UK will enhance its financial operations and methods. For instance, the UK is starting to grow in biometrics, offering more contactless payment solutions to businesses to make it more convenient for businesses and consumers to make transactions. However, we may have to wait and see what happens since it is still relatively new, so we have to be on the lookout.
Brexit came with a lot of major changes to the United Kingdom, and it hugely impacted the way the UK will make payments and transfers.