What Is Faster Payments?

The Faster Payment System (FPS) was launched in 2008 to make electronic retail bank transfers significantly faster.

Banks, building societies, fintechs, and other payment service providers can access FPS directly or through another participant. The system supports several payment types, including single immediate payments, forward-dated payments, standing orders, and Direct Corporate Access payments.

How Faster Payments Works

When a payment is initiated, the sender’s payment provider submits it to the FPS infrastructure, which processes and routes the transaction to the receiving provider in near real time.

The receiving bank usually makes the funds available to the beneficiary within seconds. Interbank obligations are settled separately on a deferred net basis through the Bank of England’s RTGS system during business-day settlement cycles.

Faster Payments Limits and Availability

FPS operates around the clock, every day of the year.

The scheme supports individual payments of up to £1 million, although banks and payment providers can apply lower limits depending on the customer, account, or payment type.

Faster Payments vs Bacs and CHAPS

Faster Payments is designed for near-real-time domestic GBP transfers and is available 24/7.

Bacs is commonly used for Direct Debits and bulk Direct Credits, including payroll, and typically follows a three-day processing cycle.

CHAPS is generally used for high-value or time-critical sterling payments that require same-day settlement.