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Highly awaited Faster Payments Service is launched for Consumers

Published on Friday, May 30, 2008

This week sees the launch of the highly awaited Faster Payments Service, 8 years after the UK banking industry promised to speed up transaction time for payment processing between accounts.

In the week leading up to the launch, the UK banks have been testing the new system by transferring hundreds of penny payments between accounts. In an attempt to combat overloading the new infrastructure, the UK banks will be introducing the Faster Payments Service in a phased rollout. The founding banks will each implement their own plans for introducing the new scheme to their customers and for more information you should contact your bank.

The 13 banks included in the scheme are: Abbey, Alliance and Leicester, Barclays, Citi, Clydesdale and Yorkshire Banks (National Australia Group), Co-operative Bank, HBOS, HSBC, Lloyds TSB, Nationwide Building Society, Northern Bank (Danske Bank), Northern Rock, and Royal Bank of Scotland Group (including NatWest and Ulster Bank).

Whilst this is great news for personal banking we will have to be slightly more patient when it comes to business transactions. However, when the Faster Payments Service is available for corporate payments, the money saved in banking costs will be attractive and will help free up working capital resources.