Payment Rails: Volumes & Values

Issue 593: 10 April 2024

Payment Rails: Volumes & Values

Today’s Payments:Unpacked is brought to you by SkyParlour the go-to PR and content agency for international Fintech, RegTech, Payments and eCommerce organisations.

In this third round up for retail payments in 2024 we continue to see double digit growth in the volume and value of Faster Payments and double digit decline in paper clearing.

The growth in volume and value for the UK’s bulk clearing scheme (Bacs) were 1% and 5% respectively with growth in the volume and value for the UK’s real time gross settlement (CHAPS) system now 1% and a decrease of 10% respectively.

Note: All data is publicly sourced and is the latest available: Pay.UK February 2024.

Source: Pay.UK

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Faster Payments

In the 12 months to the end of February 2024:

• Single Immediate Payment volumes have increased by 19% (12 months to January 19%)

• Total Faster Payment volumes have increased by 14% (12 months to January 14%)

• Single Immediate Payment values have increased by 16% (12 months to January 17%)

• Total Faster Payment values have increased by 13% (12 months to January 14%)

Faster Payments volumes continue to be bolstered by the switch from analogue to digital payments, reinforced due to the pandemic and also by the growing importance of Open Banking initiated Account to Account (A2A) payments.

Continued growth in Faster Payments is expected from Open Banking A2A payments and payments initiated by overlay services such as Variable Recurring Payments (VRPs).

The growth is also likely to be bolstered through the introduction of new Faster Payment types (or flavours) as part of version 1.0 of the planned New Payments Architecture (NPA) and, perhaps, through a future planned migration of Bacs Direct Credit payments into the NPA.

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Bacs Direct Debit and Direct Credit

In the 12 months to the end of February 2024:

• Bacs Direct Credit volumes have decreased by 2% (12 months to January decreased by 2%)