Phased rollout for new Faster Payments Service

With one month to go, APACS, the UK payments association, has confirmed plans for the launch of the new Faster Payments Service. The new payments infrastructure for this service remains on track to be launched on 27th May and, from this date, founding banks will be gradually implementing their own plans to deliver the new service to their customers. This phased approach will help ensure that the service is launched smoothly, securely and with total reliability for customers. Further updates on launch plans will be made prior to 27th May.

The new service will benefit customers by speeding up one-off payments made over the internet or by phone, reducing the current three-day clearing timescale to enable these payments to clear within hours, not days. For the very first time it will also be possible to make these payments all day every day. The service will also enable same day clearing for regular standing order payments made on bank working days, reducing the current clearing timescale of three days.

Each participating financial institution will be confirming their own plans for introducing their competitive services to their customers and explaining what this means for them. At present there is no need for customers to do anything or to make any changes to existing payments. Any payment that is not processed through the new service will continue to be made using the existing Bacs three-day service.

To ensure a smooth rollout of this new service, volumes on launch day are being carefully managed. This means on day one it is expected that only 5% of members' internet and phone payments will be processed as faster payments. As an additional introductory measure some financial institutions will place lower initial limits on the value of phone and internet payments that can be sent or alternatively they may choose to phase rollout across their customer accounts. Standing orders are scheduled to start being processed through the Faster Payments Service from 6th June. Over the summer the overall volumes are expected to increase to over 50% of anticipated peak-day processing volumes.

The development of this brand new payments infrastructure has been on an unprecedented scale. It has been a massively complex project for all involved and it is estimated that the cost across the sector could reach several hundred million pounds. It will deliver a level of service for UK customers second-to-none in the world.

Paul Smee, APACS Chief Executive says, "The UK banking industry has pulled together to deliver this new payment infrastructure to a demanding timescale. The challenge of achieving this cannot be underestimated. As with any payment system there is no room for error as it will be an integral part of the UK's economic infrastructure. A phased rollout will best help us ensure customers get the safety, integrity and efficiency they have come to expect when making payments here in the UK."