Press Releases
24 May 2005 - UK Banks to develop new infrastructure to speed up internet, phone and standing order payments
- APACS forms Implementation Group to determine how to deliver the new system
- New service expected to be in place in 2007
APACS, the trade association for the UK payments industry, today welcomed the agreement by the Payment Systems Task Force that a faster payments service be introduced. The banking industry has been closely involved with the Task Force and has played a major role, leading to this positive decision. On the back of this announcement APACS will now lead the complex challenge to deliver the central system for this service within two and a half years.
The first task, which is to be completed within six months, is to decide and agree on the technological platform. To this end, APACS has established an Implementation Group. The key challenge for this first phase is to ensure the technology is suitably robust, secure and efficient with the capacity to meet longer-term requirements, and to seek agreement with the participating banks, who inevitably will need to undertake significant work to make their own systems compatible.
Paul Smee, APACS Chief Executive, said: "This is a positive move. The driver behind changes in payments should be customer-led. Despite the fact that research tells us that for the majority of customers in the majority of situations speed is less important than cost, certainty and security, the advent of the Internet has brought with it a growing expectation that online payments should move speedily, at the touch of a button. This new service will not only impact Internet payments but also phone and standing order payments. These together accounted for 7% of all automated payments last year. Whilst this figure is low, in a few years' time as online banking continues to grow, customers will want to make more of these payments. So, the timing for this massive change and investment is just right.
"The Task Force has worked extremely effectively bringing together diverse interests for the benefit of consumers we look forward to the continuing challenge of delivering real change to customers".
"The UK will have a faster payment service to rival the best in the world with the resilience and reach that are key to payments and in an environment where UK customers enjoy free banking if their accounts stay in credit".
For more information contact:
Sandra Quinn, Director of Corporate Communications, APACS
T: 020 711 6234 E: sandra.quinn@apacs.org.uk
Jemma Smith, Communications Manager, APACS
T: 020 7711 6340 E: jemma.smith@apacs.org.uk
Mark Bowerman, Communication Executive, APACS
T: 020 7711 6251 E: mark.bowerman@apacs.org.uk
Notes to Editors:
APACS is the UK trade association for payments and for those institutions that deliver payment services to customers. It is also the banking industry voice on payments issues such as plastic cards, card fraud, cheques, electronic payments and cash. It currently has 31 members, including the high street banks, major global banks, building societies, credit card issuers, the Royal Mail Group and the Bank of England.
There are ten APACS members on the Implementation group. Membership of the APACS Implementation Group is open to all APACS members who want to input into the delivery of a faster payments service to personal and business customers. Non-APACS financial institutions will also be able to participate if any so wish.
The Payment Systems Task Force expects to set up a working group to examine issues relating to cheques starting in October 2005. Cheque issues have not been discussed to date within the Task Force and this current announcement only relates to automated phone, Internet and standing order payments.
UK Payment Schemes:
Bankers' Automated Clearing Services was formed in 1971, having previously been known as the Inter-Bank Computer Bureau. The main task of the Bankers' Automated Clearing Services was to provide a central clearing function for bulk automated payments. In 1985 it changed its name to BACS Limited and expanded its membership to include building societies.
On 1 December 2003 BACS completed a review of its governance and separated into two companies, BACS Ltd and BACS Payment Schemes Limited (BPSL). Today, BACS Payment Schemes Limited (www.bacs.co.uk) is the membership based 'not for profit' industry body whose role is to develop, enhance and promote the use and integrity of automated payment and payment-related services. It also governs the rules and legal structures under which payments are made and promotes best practice amongst those companies who offer payment services. Its principal products are direct debit and direct credit.
The Cheque and Credit Clearing Company is responsible for the bulk clearing of cheque and paper credits throughout Great Britain. Members of the Cheque and Credit Clearing Company are individually responsible for processing cheques drawn by or credited to the accounts of their customers. In addition, several hundred other institutions provide cheque facilities for their customers and obtain indirect access to the cheque clearing mechanisms by means of commercially negotiated agency arrangements with one of the full members.
CHAPS Clearing Company is one of the largest real-time gross settlement (RTGS) systems in the world. It offers members and around 400 financial institutions utilising agency arrangements an efficient, risk-free and reliable same-day payments mechanism for both sterling and euro RTGS payment requirements. The primary objective of the CHAPS clearing is to process and settle systemically-important and time-dependent payments. Key drivers for the Company are the provision of a robust and resilient infrastructure, innovation through responding to members' and market needs and the ability to do so in an efficient and cost-effective manner.
