Faster Payments: Managing customer expectations

Abstract

The Faster Payments Service (FPS) was launched in 2008 and has witnessed significant growth since its inception. In 2010, the second full year of operation, volumes rose above anticipated levels, and new products and services supported by this 24✠7 immediate payment capability are starting to evolve. VocaLink has undertaken much work to assist banks and their customers in the implementation of FPS within their businesses and to leverage the opportunities it provides to offer improved service level agreements. Some of these innovations are markers for a convergence between card, automated clearing house and Real Time Gross Settlement payment behaviours. Studies since 2008 have witnessed a slow but significant change in customer behaviour and expectation. Accord and VocaLink conducted research in 2010 to determine consumer and small business impressions and the take up of FPS. This independent research is based on a reasonable sample size (more than 2000 individuals and 300 small and medium-sized enterprises (SMEs)), and the results point to a widespread consumer understanding of a change in payment services, but without clear understanding of FPS in itself as a service or brand proposition. It is perceived by the consumer to be the capability of a bank, rather than a network or scheme capability. A clear shift has been seen in expectation of service levels and the art of the possible. In a separate study, the benefits of a mobile bank-account-to-bank-account payment service was examined, and the SME sector’s willingness to pay for such a service to reduce reliance on cheques and cash.