New payments system on track

The UK banking industry has said it is on track to roll out the new faster payments system by November 2007. The system will bring the UK into line with other users of similar systems around the world. It means that UK customers who choose to make a faster online or phone payment will be making it in near real time which means the payment will complete within a couple of hours. Standing order payments will also be able to move more quickly though these will only be processed on bank business days.

Thirteen institutions are founding members of the new system. They are Abbey, Alliance & Leicester, Barclays, Citibank, Co-operative Bank, Danske Bank, HBOS, HSBC, Lloyds TSB, National Australia Group, Nationwide Building Society, Northern Rock, Royal Bank of Scotland Group. These financial institutions account for more than 95 per cent of all payments made in the UK. Other financial institutions will be able to access the system through arrangements with the founding members.

Paul Smee, Chief Executive of UK payments service APACS said: ‘Building a new payments system of this scale is a mammoth task: this is a multi-million pound project to deliver a state-of-the-art system that will speed up phone, online and standing order payments. Central testing of the new infrastructure has already started and although in its early stages, is going well. In saying that, meeting our November target is still enormously challenging because all thirteen members have to link to the system and carry out further tests to ensure the new system will be safe, efficient and robust.’

He adds: ‘This service will be great for any customer wanting to move money quickly – perhaps to pay a bill or move money between accounts.  Like the internet, it will be available all day, and will move a payment within a few hours and on any day of the week.’