Faster payments plan hits the skids

In an embarrassing move, the industry has admitted that it will not be able to develop the proposed Faster Payment system in time for implementation this year, and the scope of the project will now have to be changed to accommodate growing use of internet and phone-generated funds transfers.
Industry body APACS presented the decision as an “update on its objectives to deliver a new faster payments system in the UK and changes to the cheque clearing processes which will provide certainty and increased transparency for customers accepting cheques”.
Announcing the decision to restructure the project, Paul Smee, APACS chief executive, said, "The UK banking industry is disappointed that we won't be able to deliver the new faster payments system as quickly as we had planned, but there is no room for error when launching a system which forms part of the UK’s economic infrastructure. Clearly, it is more important to make sure it is done with our total confidence than rushed to meet a self-imposed delivery date. This is a huge project; the investment by UK banks in the central system and in adapting their own systems has been high and is continuing; the new service to be delivered in 2008 is ambitious, innovative and exciting for users."
APACs said that the testing of the service “has proved more complex and time-consuming than originally expected”, leading to the delay A “thorough re-plan is now being undertaken”, it said, adding that a revised launch date will be decided on by mid-August.