Bacs is due to go live with this model later this year.
The first phase previously went live in March 2018 and allowed non-bank PSPs to settle payments using their own funds.
Delivery of this project further opens up access to the UK payments market. It is a change that benefits non-bank PSPs, such as authorised payment and e-money institutions, which may not otherwise have been able to meet the capital obligations required to join the payments schemes.
Pay.UK encompasses the retail payment services Bacs, Faster Payments, and Cheque and Credit Clearing.
The model enables them to gain direct access to a payments scheme without relying on a third party (usually a competitor) either to submit payments or settle payments on their behalf.
Pay.UK has worked with the Bank of England, the Financial Conduct Authority and HM Treasury to develop and implement the contractual and legislative changes that have enabled development.
The model aims to keep payments secure and dependable, as well as maintain protection of the funds used to make payments, whilst minimising systemic risk for the UK’s financial system and its participants.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now