New Payments Architecture transition questionnaire
Pay.UK received an excellent response to the Faster Payments transition questionnaire with 63% of current and future (organisations that have expressed serious interest in joining Faster Payments) participants responding. This accounts for 97% of current Faster Payments transaction volumes.
The questionnaire was open from July to August last year and asked industry to consider the recommended Faster Payments transition approach (‘all receive, then send’), the adoption of ISO 20022 messaging standards and broader transition considerations.
You can download the full report below. Key findings were:
- A controlled ‘all receive, then send’ approach received near-unanimous support from industry
- To mitigate against delays, the introduction of commercial and regulatory incentives to adhere to agreed migration timelines
- A transition window of up to 12 months for those with the greatest volumes to move Faster Payments traffic to the New Payment Architecture from the legacy infrastructure
- Respondents also indicated that a dual collateralisation/settlement model through transition was a key concern. Pay.UK should support transition by working with participants and the Bank of England to mitigate the impact through the transition window
- Adoption of the ISO 20022 message standard has a central role in transition. The majority of responders were keen to see certain enhancements introduced at the time of transition. This approach is in line with adoption of ISO 20022 in other market infrastructures.
As we move forward with programme and transition state planning this report and the responses received will be a valuable input to decisions that lie ahead.