Short Definition:
Faster Payments is the UK's near-instant bank-to-bank payment system, moving money between accounts in seconds rather than days.
Full Explanation:
Faster Payments processes single payments up to £1 million around the clock, settling the vast majority within seconds and clearing final settlement between banks multiple times a day. It underpins most everyday UK transfers — from Bacs alternatives to app-based bank payments — and sits alongside CHAPS (for high-value, same-day payments) and Bacs (for slower, batched payments like payroll). It's operated by Pay.UK, though oversight of the scheme is currently transferring from the Payment Systems Regulator to the FCA as part of the wider payments regulation consolidation working through Parliament.
In Practice:
A UK SMB paying a supplier same-day via online banking, rather than issuing a cheque or waiting for a three-day Bacs cycle, is almost always using Faster Payments — this is also the rail most Authorised Push Payment fraud runs through, which is why founders should treat any "urgent" payment request with extra scrutiny.
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Source Link:
https://www.psr.org.uk (Payment Systems Regulator — Faster Payments designation and rules)
Last Reviewed:
20260725
