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Non-bank PSPs get UK competitive boost

Non-bank PSPs get UK competitive boost

Non-bank payment service providers (PSPs) can now use client funds to support payments made via the UK's Faster Payments system.

Bacs is due to go live with the model later this year in a move designed to open up access to the UK payments market.

It should benefit non-bank PSPs, such as authorised payment and e-money institutions, which may not otherwise have been able to meet the capital obligations required to join the payments schemes.

The firms can now gain direct access to a payments scheme without relying on a third party (usually a competitor) either to submit payments or settle payments on their behalf.

This is the second phase of the new access model; the first phase, which went live last March, allows non-bank PSPs to settle payments utilising their own funds.

Paul Horlock, CEO of Pay.UK, says: "We are committed to enabling the move towards a more open and efficient payments market that will benefit everyone, as well as supporting innovation whilst ensuring payments remain secure and dependable."

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