Faster Payments reaches new heights (and Direct Debit steps ahead)

Issue 295 | 25 March 2022

In this edition of the Payments:Unpacked Tracker we unpack the latest volumes and values of payments processed in the UK through the Bacs, CHAPS, Faster Payments, Cheque and Debit / Credit Card schemes.

Note: All data is publicly sourced and is the latest available: Pay.UK February 2022, Link March 2022 and UK Finance December 2021.

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In this third round up of retail payments in 2022, we see the impact on the volume and value of payments processed in the UK with the easing of Covid restrictions, compared to Lockdown 3.0 conditions in 2021.

Source: Pay.UK

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Faster Payments

In the 12 months to the end of February 2022 we see that:

• Single Immediate Payment volumes have increased by 23% (12 months to January 23%)

• Total Faster Payment volumes have increased by 22% (12 months to January 22%)

• Single Immediate Payment values have increased by 26% (12 months to January 27%)

• Total Faster Payment values have increased by 26% (12 months to January 26%).

The growth trend has continued in February with both volumes and values significantly ahead of 2021 levels. February 2022 saw an increase of 21% in the volume of Single Immediate Payments processed in the month compared to 2021 and 20% in the value of Single Immediate Payments.

The widespread use of faster payments is a digital payment habit that will be here to stay, reinforced throughout each lockdown and with volumes and values increasing each time restrictions have eased. In the first 3 months of 2022 we expect to see increasing growth given the differing conditions in place with the trajectory flattening as conditions across both years become more in line.

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Bacs Direct Debit and Direct Credit

In the 12 months to the end of February 2022 we see that:

• Bacs Direct Credit volumes were unchanged (12 months to January also unchanged)

• Bacs Direct Debit volumes have increased by 4% (12 months to January increased by 3%)

• Total Bacs volumes have increased by 2% (12 months to January increased by 2%)

• Bacs Direct Credit values have increased by 3% (12 months to January increased by 3%)

• Bacs Direct Debit values have increased by 10% (12 months to January increased by 8%)

• Total Bacs values have increased by 5% (12 months to January increased by 4%).

Volumes for Bacs Direct Credits in February 2022 increased by just 0.1% when compared with February 2021 thus contributing to the year on year stability with volumes being unchanged when compared to the 12 months ending February 2021.