What is the Faster Payments Service (FPS)?

Created in 2008, the Faster Payment System is available 24/7/365 and is available to most customers in the UK with a bank account. In 2021, FPS processed £2.6 trillion (over $2.9 trillion) across 3.4 billion transactions.

How does the Faster Payments Service (FPS) work?

A number of different services—including banks, fintechs, and payment service providers—are able to connect securely and directly to the Faster Payment Service system infrastructure. These connections are what facilitate payments across the FPS.

In general, provided that both the sending and the receiving bank are direct participants of FPS, funds are available immediately upon transfer. In some cases, transfers can take as long as two hours—though this is more likely to occur outside of normal business hours or if one party is not a direct FPS participant.

Because payments sent use the Faster Payments Service happen in real-time, they cannot be canceled or recalled once they are sent. In the event of a mistake, financial institutions within the UK must follow the Credit Payment Recovery (CPR) procedures to help with the recovery of any payment sent in error.

To learn more about Faster Payments and Payment Operations, check out these additional resources:

• The State of Payment Operations 2022
• Why Payment Operations Should Be Part of Your Fintech Stack
• Real-Time Payments, A Generational Shift
• The Cost of Payment Operations
• Money Movement Matters: A Case for Payment Operations
• Best Practices for Payment Operations