The U.K.’s Payment Systems Regulator and the Bank of England have officially formed the New Payments Systems Operator (NPSO), a regulatory body that will soon replace three existing payment systems.

The NPSO aims to complete the task of combining the Bacs Payments Schemes Ltd., the Cheque and Credit Clearing Company and the Faster Payments Scheme into a single agency by the end of this year, the organizations said Wednesday.

U.K. payment regulation authorities last month appointed Melanie Johnson, a veteran of public- and private-sector financial services initiatives, to the role of NPSO chair.

“The creation of the NPSO is an important step in streamlining the U.K.’s payment systems and creating an environment that delivers competition and innovation for everyone,” said Hannah Nixon, managing director of the Payments Systems Regulator, in a press release.

“The Bank of England and PSR will continue to closely monitor the progress of the consolidation and expect good headway to be made toward completing the transaction over the next few months,” added David Bailey, director of financial market infrastructure for the Bank of England.

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