Faster Payments
Faster Payments is the UK payment system that moves sterling between bank accounts in near real time, around the clock, for everyday and lower-value transfers.
How it works. Introduced to bring speed to routine UK payments, Faster Payments settles transfers within seconds in most cases, at any time of day, every day of the year. It underpins much of what people now take for granted: instant bank transfers between individuals, real-time bill payments, and the rapid payouts offered by many financial apps. Individual payments are subject to a value limit set by the scheme, which is high enough for most everyday and business use, though very large transfers still go via CHAPS.
What it changed. Before Faster Payments, a standard UK bank transfer could take several days to clear. Real-time settlement removed that delay for the majority of payments and became the backbone of modern UK digital banking. It is the rail behind most "pay by bank" and account-to-account payment experiences, and its round-the-clock availability changed expectations: customers now assume money moves instantly, and businesses build products on that assumption. The shift also enabled new services, from instant payouts to real-time payroll.
Where it fits. Faster Payments occupies the middle ground of UK rails: quicker than Bacs and cheaper than CHAPS, suited to the large volume of everyday, lower-to-mid-value transfers where speed matters but same-day gross settlement is unnecessary. It sits alongside Bacs (planned and recurring payments) and CHAPS (high-value, same-day) as part of the UK's core payment infrastructure, and for most businesses it is the default rail for anything that needs to arrive quickly without the cost of CHAPS. Its combination of speed, low cost and constant availability is why it now carries so much of the UK's everyday payment volume.