May launch for Faster Payments Service

by Gill Montia

Story link: May launch for Faster Payments Service

Apacs, the body that represents payment services providers, will be rolling out a faster method of transferring cash on the Internet or over the phone, on 27th May.

The Faster Payments Service has been designed to allow one-off transfers within one day, rather than the current three days.

However, the programme will get off to a slow start, with only 5% of transactions meeting the one day deadline. This should increase to 50% during the summer.

At this stage, thirteen banks are participating and will be gradually introducing the new system according to their individually designed plans.

The phased approach aims to ensure a smooth introduction of the service, which from 6th June will also provide for same day clearing of regular standing order payments, on days when banks are open.

Customers need take no action as payments that are not processed under the new system will continue to be made using the existing Bacs three-day service.

Apacs has described the development of the project, which should have been introduced last November, as having been massively complex.