The UK banking industry has revealed that it has delayed the launch of the faster payments scheme, due to unforeseen complexities during testing of the system.
APACS, the UK payments association, said that the testing of the faster payments service proved more complex and time-consuming than originally expected. As a result, the scheme, which was scheduled to be launched in November 2007, will now be delayed until next year.
The new system is being developed for longer-term needs as opposed to short-term requirements. At present, web, phone and standing order payments make up 8% of automated payments in the UK.
Paul Smee, APACS chief executive, said: The UK banking industry is disappointed that we won’t be able to deliver the new faster payments system as quickly as we had planned, but there is no room for error when launching a system which forms part of the UK’s economic infrastructure. Clearly, it is more important to make sure it is done with our total confidence than rushed to meet a self-imposed delivery date.
This is a huge project; the investment by UK banks in the central system and in adapting their own systems has been high and is continuing; the new service to be delivered in 2008 is ambitious, innovative and exciting for users, Mr Smee continued.
Meanwhile, the banking industry has confirmed that the changes to the check clearing processes are on track to be launched by the end of November 2007, and will provide increased transparency and certainty.
As part of the changes, customers, for the very first time, can be sure that after six working days funds cannot be reclaimed – typically if the check turns out to be fraudulent or if it turns out there are insufficient funds in the payer’s account.