Faster payments system hits new £26bn heights

02 Jan 2009

silicon.com, Julian Goldsmith

December was a bumper month for the Faster Payments Service (FPS). 

According to payments industry association Apacs, 3.9 million FPS payments were made on 1 December 2008 - a new daily record for the service.

FPS, which was launched at the end of May 2008, ensures standing orders, phone or internet payments appear in the recipient's account from as soon as two hours after the payment has been made.

In the first six months of operation, 63 million payments worth £26bn were processed through FPS, according to Apacs.

While two-thirds of all phone and internet payments are now processed through the service, less than half of standing orders go through FPS, the organisation found.

The service is run the clearing company Chaps, over an infrastructure provided by payments processing organisation Vocalink. FPS was supported at launch by thirteen founding banks, including Barclays, Citi, HBOS, HSBC and Loyds TSB, with other financial services institutions since coming on board.

 

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