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.

01/07 - Sterling solid despite cases number jump

GBP: Brexit deadline extended by 3 months

EUR: Who cares?

USD: Gaining strength

Sterling

Today is all about comments from Bank of England Governor Bailey in speeches both this morning and evening. This morning’s speech has only recently been announced which typically hints at an urgent need to clarify or correct a market move that the Bank of England has an issue with.

Given sterling’s recent performance we are unsure as to what that could be but are all ears when the Governor takes the stage.

Sterling remains resilient at the moment despite increases in Covid-19 case numbers linked to the delta variant and the reopening of the economy. For now, it looks like the vaccination program has broken the link between infection and hospitalisation/death and we expect any weakness in the sterling price to wash out sooner rather than later.

Euro

It is not European data that is hammering the euro at the moment but instead the strength of the US data and its effect on the USD. Today may be a quieter day ahead of the payrolls announcement tomorrow but with an ECB eager for a soft euro, nobody on the continent is putting up much of a fight in favour of the single currency.

USD

Yesterday’s jobs report from the US was not enough to change too many minds on the state of the US jobs market but a beat on the ADP measure of employment helped the USD strengthen ahead of the payrolls report on Friday.

If initial jobless claims also show a level of strength with the number of people claiming unemployment insurance falling then we can see further USD strength over the course of the day.

Those of you on our 2nd half outlook webinar yesterday will know that this is what we think will be the key determinant for markets moving forward.

Elsewhere

The mood in equities is a little more cautious this morning than most given the increase in Covid-19 cases globally. We may see a rise for the haven currencies of the yen and Swiss franc should the worry turn into a new panic.

Market rates

Today’s interbank rates at 07:58 against sterling. Movement vs yesterday.

Euro	€1.165 ↑
US dollar	$1.382 –
Australian dollar	$1.846 ↑
South African rand	R19.72 ↓
Japanese yen	¥153.7 ↑

Have a great day.

01/07 – Sterling solid despite cases number jump

01/07 – Sterling solid despite cases number jump

Sterling

Euro

USD

Elsewhere

Market rates

Jeremy Thomson-Cook

01/07 – Sterling solid despite cases number jump

Register interest

Register interest

Sterling

Euro

USD

Elsewhere

Market rates

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Jeremy Thomson-Cook