We're excited to announce TransferWise's integration into the UK’s Faster Payments Service (FPS) as technical partner to Raphaels Bank.
The partnership is the first to allow a tech company direct access to the FPS as a technology partner to a direct member. On the 21st July TransferWise and Raphaels Bank sent their first Faster Payment as part of pre-launch test activity.
Later this summer, TransferWise customers will benefit from Faster Payments to and from UK bank accounts. That means transfers will be processed instantly after TransferWise has received the payment from the customer’s bank.
TransferWise customers will now have an uninterrupted 24/7 payments service and no longer be subject to occasional bank downtime that can delay payments.
The integration has been made possible by the Faster Payment Scheme Limited’s (FPSL) New Access Model. This initiative is one of several championed by the Payment Systems Regulator (PSR), which was created in 2014 with the objective of opening access to UK payment systems.
Raphaels Bank will be the first new direct settling participant of FPSL since its launch in 2008, with TransferWise providing the technology for the bank’s integration.
TransferWise co-founder Kristo:
“This is an important development for businesses and consumers in the UK. There’s no reason why transferring money overseas should be any different from sending an email, and integration for a non-bank into the Faster Payments Scheme is a stepping stone towards making that happen.
The 'pipes' of money which make up the payments infrastructure used to be the monopoly of the banking system. Sharing access to this will restart competition, seeding cheaper, faster and more convenient financial products that directly benefit the consumer.
Longer-term we welcome the Bank of England’s project which will allow non-banks to hold their own Bank of England settlement accounts, enabling increased sign-up to the FPS. At that point innovators will no longer be dependent on the same large banks that their products challenge - true progress, showing how regulation and innovation can work hand in hand for the consumer."
Nick Caplan, independent chairman of Faster Payments Scheme Limited, said:
“We are delighted to see the world class Faster Payments Service capitalised upon to deliver new and innovative services for consumers, as a result of our programme of opening up access. This is a concrete example of how we are working collaboratively to meet the Faster Payments Scheme’s strategic objective of becoming an increasingly effective “innovation magnet” for the UK and our economy.”
Contributed | what does this mean?