Growing pressure from consumers, small businesses and corporates is driving the need for immediate payments that are available 24/7, to the extent that real-time payments have become a prerequisite for any core current account or payment account provider in the UK.
Currently, for payment service providers (PSPs), the only way to achieve this is by gaining direct technical access to the Central Infrastructure provided by Faster Payments Scheme Limited (FPSL). However, this often proves to be a costly option - especially for new entrants and smaller PSPs who lack the volumes to justify the initial investment.
FPSL’s vision is to provide a viable option, whereby a PSP can connect to a technical aggregator that combines demand from multiple PSPs, creating economies of scale. Using this new model, PSPs can get a guaranteed real-time payments service, available 24/7, at a lower per-transaction cost than the PSP can achieve by connecting directly to the Central Infrastructure. This report evaluates the potential for a new, competitive and sustainable market for these aggregators.