Background

In May 2005, the Payment Systems Task Force, a stakeholder group chaired by the Office of Fair Trading, announced the introduction of a new service that would reduce clearing times on phone, internet and standing order payments. The banking industry committed to develop a system whereby payments would clear quickly and efficiently.

In October 2005, the contract to provide the central infrastructure for this new service was awarded to Immediate Payments Limited, a joint venture company set up by VocaLink.

Faster Payments was the first new payments service to be introduced in the UK for more than 20 years.

From the end of May 2008 most banks started offering the new Faster Payments Service for online banking and phone payments. Standing orders started to be processed using the new service from June 2008. 

From the beginning of 2012 all payments must reach the recipients account by the next working day after the customer has initiated the transaction.  To ensure all customers get this service, all financial institutions that currently accept Bacs payments will ensure they are able to accept standing orders, phone and online banking payments through Faster Payments. 

Which organisations are involved?

Faster Payments Scheme Limited is responsible for the day-to-day operations and management of the service.  Faster Payments Scheme Limited is a member-based company. 

The design of the Faster Payments Service was a joint project between Immediate Payments Ltd. (IPL, a VocaLink company), UK Payments and the original 13 founding member banks, based on the commitment made to the OFT Payment Systems Task Force.  VocaLink supplies the central network for the Faster Payments Service.   From November 2009 until November 2011 the day-to-day operation and management of the Faster Payments Scheme was the responsibility of CHAPS Co.  Responsibility for the Faster Payments Scheme was transferred from CHAPS Co to Faster Payments Schemes Limited upon formation of the latter company in November 2011.

The current members of the Scheme are: