FASTER-PAYMENTS-UK

Faster Payments UK real-time payments scheme 24/7 since 2008.

Definition

Faster Payments characteristics: (1) Real-time: ~20-second median settlement time, target SLA <2 hours but typically near-instant. (2) 24/7/365 availability: process payments anytime including weekends + bank holidays. (3) Transaction limit: £1M as of April 2024 (raised from £250K Faster Payments scheme limit) ; individual banks may set lower per-transaction limits for consumer protection. (4) Direct Participants ~30 2024 (major UK banks + multiple commercial banks + non-bank PSPs since 2018 reforms enabling non-bank access). (5) Indirect Participants ~600+ reaching FPS via direct participant correspondent. (6) Use cases: P2P payments via Sort Code + Account Number ('push' payments), bill payments to companies, e-commerce instant payments, urgent corporate payments. (7) Confirmation of Payee (CoP) overlay since 2020: payer's bank checks recipient name matches account before authorising payment, prevents Authorised Push Payment APP fraud (Pay.UK rolled out CoP via CMA9 + Open Banking Standard). (8) NPA New Payments Architecture programme: Faster Payments + BACS will migrate to single new ISO 20022-native unified architecture 2024-2027+ rebuild infrastructure modern (Pay.UK + Vocalink Mastercard contractor).

Origin

Faster Payments Service launched May 2008 ; £1M limit April 2024 (previous £250K) ; Confirmation of Payee 2020 ; NPA migration 2024-2027+.

Example in context

UK consumer Sarah sends £500 instant to plumber via mobile banking app: selects 'Faster Payments', enters plumber's Sort Code + Account Number ; bank executes Confirmation of Payee check (plumber's name matches), Sarah confirms ; FPS routes through Vocalink ~5 seconds, plumber's bank credits account immediately, plumber notified mobile.

Related terms

• BACS UK — complementary retail bulk.
• Image Clearing System UK — cheques.