What is the consumer adoption of the Faster Payments Service in the UK?
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Why have people adopted or not adopted the service? http://www.chapsco.co.uk/faster_payments/-/page/343/
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Answer:
The issue with answering this question directly lies in the assumption that consumers can proactively adopt the Faster Payments service, whereas in reality the 'choice' of making a payment faster or by the old BACS system is usually invisible. The service is available to all personal banking customers of the 13 clearing banks in one way or another, however the way in which the service has been rolled out has not been consistent between the individual banks, which has led to some confusion among their customers about which payments are going faster. While the customer proposition for the Faster Payments service sounds great (send and receive money faster), it has posed some formidable challenges for banks - particularly around managing payment fraud and adapting to new clearing cycles - who have been required to make very substantial changes to their IT systems, which in many cases are decades old. It's largely as a result of these challenges that the service has not yet entirely replaced the incumbent BACS system. As such, for the majority of UK banking customers many transactions will be processed via the Faster Payments service, however certain types of payment (for example, payments for larger amounts or to unfamiliar recipients) may take 3 working days to clear.
Joe Gravett at Quora Visit the source
Other answers
Adoption has been mostly with customers of the 13 main UK clearing banks whom report base usage as being according to slightly above their projected roll-out plans - whatever that means. Conceptually everyone loves the idea, but consumers are reporting not all transfers are settling within the promised time frames. A study in March 2009 showed only 69% of payments that should have been transferred within 24 hours were doing so. There are also banks that are claiming to be enrolled that aren't fully, causing some frustration amongst consumers. That aside, once the kinks are worked out, sub 24 hour settlement will be widely adopted as it's a significant improvement over the old infrastructure.
Philip Mikal
http://bit.ly/Faster-Payment-Service This webinar will help bankers and payment professionals understand how Faster Payments Service (FPS) and other payment systems are changing the landscape and introducing a new wave of innovation into the marketplace.
Susan Partov
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