UK’s Fintech Faster Payments Increase Transaction Limit Four Times To £1 Million
The Faster Payment System transaction limit of Pay. The UK has been increased to £1 million from £250,000, starting Tuesday, said the firm’s spokesperson.
“Therefore, some customers of some banks and building societies might be able to make higher-value Faster Payments – individual payment service providers (PSPs) make their own competitive decision on the amount their customers can send within the £1m limit,” the spokesperson further told the media.
This enhancement in the transaction limit represents customer demand and assists in providing more options in the market for businesses seeking to make payments of higher value.
Electronic payments made online, over the phone, at a branch, or through self-service machines are known as Faster Payments. The payment will arrive almost instantly if the receiving bank (or building society) uses Faster Payments. However, it can also take up to two hours for the transaction to get completed. Faster Payments has a strong attraction for business payments compared to the commonly utilized CHAPS payments, which needs to be set up in a physical branch or over the phone, before 3:30 p.m. and before 5 p.m. for online payments, so that the receiver of the payments gets paid on the same day.
Customers should, however, contact their PSP directly to find out what their unique restriction is, according to a Pay.UK spokeswoman.
LHV UK, a banking services provider, is one of the few companies offering Faster Payments’ increased transaction limit.
“This limit increase is another important milestone for the payment industry and further solidifies the leading role of Faster Payments. The quadrupling of the Faster Payments limit will play a significant role for our corporate users. With the recent change, there will be wider adoption of the Faster Payment scheme over the other schemes in the UK, especially CHAPS,” said the head of LHV UK, Andres Kitter.
Mike Chambers, CEO of Northey Point Limited and author of Payments: Unpacked, also commented on the announcement, saying that this “welcome increase” marks the “quietest launch of the year’s biggest payment news so far.”
“This increase in the scheme payment limit means that almost every payment a consumer makes during their lifetime can be made via Faster Payments – even house purchases which hitherto have been subject to expensive CHAPS payments,” Chambers added.
Pay. The UK intends to make a public announcement regarding the increased transaction limit once it has established that the participants offering the higher limit were successfully using it and found it to be smooth and efficient.