The Economics of the New Access Model
Faster Payments’ New Access Model could create a £200m business opportunity for FinTech vendors while simultaneously lowering barriers to real-time payments, according to a The Economics of the New Access Model , report, commissioned from Accenture by Faster Payments.
The New Access Model, first published in December 2014, sets out proposals to enable technology vendors to offer access to Payment Service Providers (PSPs) by adding to their existing accounting platform technology, or providing a managed solution to either a single or multiple PSPs. Find out more here.
To coincide with the publication of the report, six leading FinTech providers have signed a Letter of Commitment to providing aggregation services through the New Access Model:
- ACI Worldwide
- Bottomline Technologies
- Fundtech – now part of D+H
Since the publication of the report, a further four vendors have signed a Letter of Commitment with Faster Payments Scheme Ltd and will also be undertaking the accreditation programme to provide a Faster Payments aggregation/software solution by the end of 2015:
- Compass Plus (GB) Ltd
Faster Payments currently has 11 Participants who connect directly to the service, while a further 400 PSPs access the service indirectly through sponsor banks. Accenture’s analysis suggests that - in addition to guaranteeing 24/7 real-time payments for PSPs - the New Access Model should result in lower costs over five years than sponsored access or direct membership for PSPs processing (or forecast to process) between 1.4m and 20m Faster Payments per year.
In light of the report’s findings, FPSL is proceeding with a programme to encourage more FinTech vendors to become accredited to connect to the FPS Central Infrastructure and provide aggregation services.
A PSP participation programme is running in parallel, to enable and support interested parties through the prerequisite accreditation, certification and assurance processes needed for live access to the FPS Central Infrastructure.
If you are interested in joining either the vendor or PSP access participation programme, please email email@example.com
The access programme is on track to meet its targets of having at least three accredited vendors in place by the end of 2015, with a dozen new PSPs active by the end of 2016.