UK's Faster Payments quadruples transaction limit to £1 million
Following the recent announcement of the threshold increase to £1,000,000 by the Faster Payment System operator in the UK, ABN AMRO N.V. UK Branch took a competitive decision to pass on this increase, in full, to all our corporate customers in the UK with effect from 18 March 2022.
What is a Faster Payment?
First launched in the UK in 2008, Faster Payment is a payment type which is designed for the delivery of low-value mobile and internet banking payments. It works between any two bank accounts which are connected to the Faster Payments System. The System is the UK's 24/7 real-time payments service, which processed ca. 3.4 billion Faster Payments, worth £2.6 trillion, in 2021.
ABN AMRO UK and Faster Payments
Transaction Banking HUB UK within ABN AMRO N.V. UK Branch, offers cash management and trade finance services to corporate clients in the UK with a link to ABN AMRO Group.
ABN AMRO N.V. UK branch deliver Faster Payments to our clients during working days and within the set Cut-off Times. Transaction Banking HUB UK is seeing an increase in transactional volumes in Faster Payments type, which proves its popularity with the clients. The Cut-off Times and the pricing terms are available on request via Transaction Banking HUB UK, using the contact information in the bottom of the article.
Why was the change in the threshold introduced?
The increase in the transaction limit for Faster Payments was planned by Pay.UK, the UK's Faster Payment clearing scheme operator, and the UK regulators long in advance. It reflects strong demand from retail and corporate customers and helps to provide greater choice in the market for higher-value payments.
David Pitt, Chief Executive Officer at Pay.UK, comments:
"The Faster Payment System's status as a world-class service is backed by the strong demand we continue to see amongst consumers, businesses and corporate users. We believe that increasing the maximum payment value to £1 million per transaction will continue to broaden the appeal of the service, helping to meet all users' needs".
What does it mean for ABN AMRO UK clients?
The cost of Faster Payment is considerably cheaper than that of the CHAPS high-value payment type. Both CHAPS and Faster Payment types are available via ABN AMRO's electronic banking platform Access Online in the payment initiation screen. Corporate clients of ABN AMRO UK will now be able to initiate and receive Faster Payments up to the higher value of £1 million, which will enable them to improve cost efficiency and achieve greater flexibility in their cash management operations.
More information
For further information please refer to the press release by the Faster Payments Operator in the UK on wearepay.uk.
Contact
If you have any questions or would like to discuss any implications of the change on your business requirements please do not hesitate to contact our Cash Management Specialists via commercial.banking@uk.abnamro.com.