06 Mar 2009
Same-day service Faster Payments (FP) has reached a new peak by processing 5 million transactions to a value of £1bn on 2 March, according to clearing firm Chaps.
The service, mandated by the Office of Fair Trading (OFT), enables payments made over the web or phone to be cleared in a few hours as opposed to the previous three days.
According to Chaps, the main reason for the increase in transaction volume is it being the end of the month when the majority of standing order payments are processed and increased uptake from banks allowing customers to benefit from the service.
Standing orders were the main type of transfer used during FP’s record day, while over three-quarters of a million were immediate payments made online or by phone and the remaining were forward dated payments.
More than 125 million payments have been sent or received via FP since its May launch, representing around £46bn. Chaps predicts that the service will drive an upward trend for volumes of inter-bank online, phone and standing order payments to 622 million in 2017 from the 2007 figure of 472 million.
The Faster Payment Initiative has the potential to transform UK business and is the envy of organisations across Europe.
The Faster Payments are a fraction of the cost of CHAPS transactions and facilitate almost real-time payments, it allows companies to take far greater control over the payments process and thus offers businesses maximum control over spending patterns. The money saved in banking costs will be substantial and will free up capital resource across the entire business network.
The evolution in purchasing over the past few years has created massive demand for rapid payment solutions. Business moves more rapidly today than it ever has before and will only get faster, with payment systems in danger of lagging behind. Online purchasing provides a clear business imperative for payment systems that propel rather than impede today's business practices.
With the right attitude and approach to streamlining processes, reducing costs and improving cash flow, faster payments will change the face of UK business forever.
Yours sincerely,
Adrian Stafford-Jones
Managing Director
Albany Software
http://www.albany.co.uk
Posted by: Adrian Stafford-Jones 11 Mar 2009
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