What is a Faster Payment?

Faster Payments is an initiative introduced in 2008 and operated by payments authority Pay UK. It allows funds to be transferred rapidly and securely between UK bank accounts at any time.

How do Faster Payments work?

Businesses can make Faster Payments in several ways, including via mobile banking, internet banking, telephone banking, in-branch and by using payment platforms.

How can businesses benefit from Faster Payments?

Faster Payments help businesses by providing a quicker and more convenient solution for moving money. The scheme’s primary goal is to reduce the time – from initiation to receipt of the funds – that it takes to complete a payment.

What types of businesses can use Faster Payments?

Any UK business requiring domestic disbursement of funds (and international companies looking to send money within the UK) can use Faster Payments.

Are Faster Payments free?

No, there are fees involved in using Faster Payments for businesses. The fee is completely different for each business and depends on different factors such as industry and volume of payments.

How long do Faster Payments take?

Faster Payments take a matter of seconds. Provided the beneficiary’s bank is also a direct participant of the Faster Payments Scheme, the money will be received almost instantly. In rare cases, Faster Payments may take up to two hours.

Do Faster Payments have a transaction limit?

Faster Payments have an individual transaction limit of £250,000.

Can Faster Payments be reversed?

No, Faster Payments cannot be reversed or cancelled.

Which banks use Faster Payments?

The Faster Payments Scheme states that 99.99% of UK bank accounts can accept Faster Payments. Non-bank payment platforms, such as Equals Money, can also use the scheme.

01/09 - Euro inflation picks up

GBP: Sterling moves as a by-product of other currencies

EUR: Inflation picks up in Europe to 3%

USD: Dollar edges off in month-end volatility

Sterling

Yesterday, the UK was very quiet in terms of data and sterling appeared to move as a by-product of other currencies. This morning the UK’s manufacturing PMI came out above expectations, however this has had little to no impact on the currency markets.

Euro

CPI came out from across Europe yesterday. The CPI and core CPI both exceeded the market expectations, coming in at 3% and 1.6% respectively. It has been rare for inflation to be above the ECB’s target, and now the market will start to question whether an interest rate rise or tapering will need to take place in Europe. The ECB expects inflation to peak later in the year, so the euro could strengthen if the trend continues.

USD

Yesterday the dollar was relatively volatile following on from Fed Chair Powell speaking on Friday at Jackson Hole. This coupled with it being month-end led to the dollar edging off as dovish tones had surprised the market on Friday. Chicago PMI and CB consumer confidence were also below market expectations, which may have contributed slightly. Eyes will be on the US this Friday with the jobs figures being released then.

Elsewhere

Noticeably overnight we saw the Australian dollar strengthen as GDP came out above market expectations. This is despite the backdrop of a slowdown in China.

Market rates

Today’s Interbank Rates at 09:58 against sterling. Movement vs Friday.

Euro	€1.164 ↓
US dollar	$1.375 ↓
Australian dollar	$1.872 ↓
South African rand	R19.85 ↓
Japanese yen	¥151.8 ↑

Have a great day.

01/09 – Euro inflation picks up

01/09 – Euro inflation picks up

Sterling

Euro

USD

Elsewhere

Market rates

Jeremy Thomson-Cook

01/09 – Euro inflation picks up

Register interest

Register interest

Sterling

Euro

USD

Elsewhere

Market rates

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Jeremy Thomson-Cook