- Bank is first to declare intention to join during 2016
- New joiner is key milestone for Faster Payments Access Programme
Raphaels Bank has become the first of several new financial providers to confirm their intention to join Faster Payments, the UK’s 24/7 real-time payment service, following a joint announcement made today [12 January 2016].
Faster Payments currently has 11 participants that connect directly to the payment system, while a further 400 payment service providers (PSPs) access it indirectly through a sponsor bank. Raphaels Bank is aiming to be up and running as a direct participant by the summer of 2016 and is the first of a new wave of PSPs to publicly announce their intention to join.
A number of other payment service providers, including several challenger banks are also working towards joining the service this year, underlining Faster Payments’ commitment to level the playing field for access, promote competition and ensure the full, real-time 24/7 service is available as widely as possible to end users. The importance of offering real-time payments will only increase: independent research commissioned by Faster Payments* predicts the size of the UK real-time payments market is likely to almost treble in the next five years, with annualised growth of 20% forecast, leading to 3.3 billion Faster Payments being sent in 2020 alone.
Miles Roberts, Chief Executive of Raphaels Bank, said:
“Raphaels continues to be at the forefront of payments development and this significant move demonstrates our commitment to innovation in payments. Through our direct participation we aim to deliver the opportunity to access Faster Payments to the wider payment service provider community.”
Craig Tillotson, Chief Executive of Faster Payments, said:
“Faster Payments is a world leading service – gaining direct access to Faster Payments is a really effective way for payment service providers of all shapes and sizes to offer their customers the real-time 24/7 payments they demand and compete in the digital economy.”
“The benefits of direct access to Faster Payments are widely recognised – yet, up until now, the decision to connect has too often been perceived as a daunting one for new banks. I’d like to congratulate Raphaels Bank on being the first to demonstrate the progress we’ve made on levelling the playing field – and with several more challengers lined up to connect directly this year, 2016 looks set to be the year that breaks the mould for access to real-time payments.”
Today’s announcement marks the latest step forward for the Faster Payments Access Programme, which is developing a new way to access Faster Payments, by fostering a competitive market in technology vendor operated aggregation services. The vision for how the new model will work is set out in a whitepaper published on the Faster Payments website Faster Payments: A Vision for a New Access Model.
Raphaels intends to use its participation in Faster Payments to offer services to payment service providers that plan to access Faster Payments through the new access model.
The Access Programme is on track to meet its targets of having several accredited aggregator vendors in place alongside a dozen active new payment service providers (PSPs) by the end of 2016. Any PSPs interested in joining the service can find out more on the Faster Payments website: http://www.fasterpayments.org.uk/access-payments
For further information about Raphaels Bank contact Alison Reeson or Parm Heer on 020 8977 9132 or email firstname.lastname@example.org
For further information about Faster Payments contact the press office on 020 3217 8441/ 8340/ 8251/ 8316/ 8368 or email email@example.com.
Notes to editors
*Research carried out by Accenture on behalf of Faster Payments in May 2015 estimated the growth potential for the service. Find out more in The Economics of the New Access Model.
About Raphaels Bank
Raphaels Bank is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. A long established independent banking house in the UK, with origins to 1787, Raphaels offers financial products for private customers including a range of savings products, in addition to being a provider of niche lending facilities through partners and brokers.
The Bank is a leading player in the payments market and issues MasterCard and VISA cards with partners in the UK and other European countries.
Also a member of the LINK ATM scheme, Raphaels has an estate of ATMs, including the London tube network, dispensing both sterling and foreign currency.
About Faster Payments
Faster Payments is the only UK payment system available day and night, 365 days per year, supporting the demands of personal and business customers. In 2015, Faster Payments processed 1.24 billion payment transactions with a value of £1,104 billion.
The Faster Payments Scheme has 10 direct settling participants: Barclays, Citi, Co-operative Bank, Clydesdale and Yorkshire Banks, HSBC (including first direct and M&S Bank), Lloyds Banking Group (including Lloyds Bank, Halifax and Bank of Scotland), Nationwide Building Society, Northern Bank (Danske Bank), Royal Bank of Scotland Group (including NatWest and Ulster Bank) and Santander UK. PayPal connect to Faster Payments on a direct agency basis, whilst a further 400 PSPs access the service indirectly through a sponsor bank.
Faster Payments Scheme Limited (FPSL) is an independent limited by guarantee company established in 2011. The Scheme exists to develop, operate and enhance payment services based upon a shared 24/7 real-time infrastructure.. FPSL is driven by the long-term needs and aspirations of customers, businesses, government, the third sector and all types of PSPs including challengers and incumbents. The Scheme operates on a fair and equitable cost recovery basis. It does not seek to make a financial return for its guarantors.