UK Faster Payments Scheme Connectivity Guide

Helping you choose the right connectivity model for your business

Payments Technology as a Service
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Faster Payments Scheme (FPS)

April 14th, 2021 - 9 minutes

Do you require real-time payments in the UK? Are you looking to move your Faster Payment Scheme (FPS) traffic elsewhere? Are you looking to migrate to a different FPS connectivity model? 

We have the widest range of access models available to anyone who needs to connect to the UK Faster Payment Scheme, so you can select the right one for you (see below). 

Form3 has provided direct connectivity to 5 out of 10 new UK FPS participants in 2019 & all new participants in 2020.

Form3 is officially one of only a handful of Faster Payments Aggregators accredited by Pay.UK so you're in safe hands.



Faster Payments Connectivity 

Models Explained

Get in touch with us to discuss how you can access FPS with Form3

What is it?

Who is it for?

How does it work?

You are directly connected to Faster Payment Service scheme as a member, your own sort code and a direct settlement account with the Bank of England.

For regulated financial institutions looking for high volume access to Instant payments in the UK. Gain direct access to the Faster Payments scheme with settlement via a Bank of England account.

Cloud-Native, JSON-based API gives you full access to all fields and options of Faster Payments, including the ability to send: Single Immediate Payments, Forward Dated Payments, Standing Orders and Return Payments, Inward Faster Payments are received via a webhook or Amazon SQS link.

You are directly connected to Faster Payment Service scheme as a member, your own sort code and settlement is handled by your sponsor at the Bank of England.

As an FPS sponsored participant, you gain full real-time direct access to the Faster Payments scheme via your sponsor who will undertake clearing and settlement on your behalf. You'll receive all the benefits of being a direct participant but without needing a Bank of England settlement account.

You are not directly connected to Faster Payment Service scheme, with all payments flowing through your sponsor for processing and settlement.

For regulated financial institutions looking for access to real-time payments without the obligations related to Pay.uk scheme membership or the Bank of England. This is normally for speed to market.

This is the faster way to gain access to the UK Faster Payments (FPS) scheme. As an FPS Indirect participant, you gain access via your sponsor who will provide liquidity in the form of a pre-funded bank account for net daily activity DR/CR. The sponsor will undertake processing, clearing and settlement on your behalf.

Key Considerations for 

Each Connectivity Model

DCSP

DCNSP

Indirect Agency

££ 

The cheapest option. It takes take approximately 3 months to go live depending on certain factors

£££

Similar cost profile to DCSP however you don't need a Bank of England account and there is no cost of collateral. The sponsor bank will cover the costs of the other relevant overheads.

£££

The most expensive option available due to the nature of directly connecting to FPS (need a Bank of England account, consider the cost of collateral and other ongoing overheads).

Longest project duration out of the three options. FPS has limited live slots throughout the year and it is generally completed in 12 - 18 months.

Depends on the availability of the scheme, however, it is generally completed in 6-12 months.

The cheapest option however it approximately takes less than 3 months depending on certain factors.

The simplest model as the sponsor bank is already a DCSP, therefore the only integration required is to FORM3 APIs.

Exactly the same as DCSP except the sponsor bank handles liquidity and settlement, taking away the Bank of England aspect.

The most complex project due to a requirement for a gateway, formal scheme testing, SWIFT infrastructure if needed, a Bank of England enquiry link for settlement and liquidity arrangement.

Technical Complexity

Project Duration

Cost

Direct Connected Settling Participant (DCSP) 

DCSP gives you full control of your payment's connectivity model allowing you more freedom to conduct your business. If you’re looking to remove the reliance on a sponsor's risk appetite, then DCSP should be highly considered.

Which connectivity model

is right for you?

Directly Connected Non-Settling Participant (DCNSP) 

The key difference here is the non-settling aspect compared to DCSP. If you don’t want or can’t get a Bank of England account for whatever reason, DCNSP is a more suitable model for you. It’s important to remember that FPS is a pre-funded model therefore you need to consider your liquidity and collateral with the sponsor. DCNSP tends to be simpler than DCSP as you don't have to worry about settling and the cost of collateral with a Bank of England account.

Indirect Agency Model

If you don’t want all of the overheads of connecting directly to FPS (various obligations such as ongoing overheads of connecting, scheme engagement, attestation audit, retesting, re-certification etc), this is the model for you.

These obligations will be shielded by your sponsor bank. The key benefit is that you’ll be completely insulated from all of the specifics. If you just want access to FPS, including a safeguarding account, without the headaches this is the model for you.

Indirect Agency

DCNSP

DCSP

Download

Download our comparison model comparison table:

For regulated financial institutions looking for high volume access to Instant Payments in the UK without settlement obligations. Gain direct access to the Faster Payments scheme with settlement via a sponsor bank.