The Faster Payments Service will have its second anniversary this week, marking two years since the service began to cut the time taken for UK payments to be processed.
The service is well underway according to a recent Payments Council report, with a greater volume of internet and telephone banking transactions being generated than had been forecast.
Consumers are participating in over 10 million one-off transactions via the telephone or internet more than was the case two years ago.
Head of business services at ACI Jim Woodworth has predicted that the rising popularity of the service presents banks with a challenge for the future, namely that volume would substantially alter the way banks do business.
Woodworth has also suggested that by 2050 notes and coins could be entirely surplus to requirements.
In 2008 VocaLink set up the service’s infrastructure, and the firm’s spokesman Chris Dunne has commented that the perception of the service has changed from being seen as a regulatory headache to an opportunity for business.
Dunne went on to predict that by 2012 four out of five banks will offer mobile payments.
Experian Payments Product Manager Norman Taylor has commented that whilst most retail customers have access to Faster Payments many corporate customers do not have such direct access.
Taylor went on to state that only Barclays offered such access via its Direct Corporate Access (DCA), and called for more to be done to encourage participation by corporates with the Faster Payments service.