If you are wondering how to get access to faster payments for your company, then keep reading on. This article will help you to understand Faster Payments better and find the right bank for access to FPS system.
The Faster Payments system in the UK is a way to send money quickly and securely. It allows near-instant electronic transfers of money, enabling business to make payments or transfers 24/7, including weekends and holidays.
The Faster Payments in the UK works through electronic communication between banks and other financial institutions within the Great British Pound (GBP) monetary system.
Why Faster Payments Are Important For Business?
Faster payments are beneficial for businesses in the UK because they provide quick and efficient money transfers, allowing companies to manage their finances in real-time.
This speed of money transfers can improve cash flow, facilitates faster settlement of transactions, especially when business has a high velocity, and enables businesses to respond rapidly to financial needs.
For non-UK companies, leveraging the Faster Payments system can be beneficial in several ways. Firstly, Faster Payments facilitate swift cross-border transactions, enabling non-UK companies to efficiently conduct business with their UK counterparts. Being fast and efficient in turn increases the trust of business counterparts and timely payments are highly appreciated as it helps the cashflow management.
Secondly, having access to Faster Payments can lead to cost savings. Often banks would make money transfers in GBP via SWIFT, which is a costly payment method. The efficiency of the FPS system and having a UK based bank account may help minimize transaction costs for non-UK companies to a very minimum.
Moving on, utilizing Faster Payments can provide a competitive edge, especially in industries where speed is a critical factor.
Lastly, having a UK based bank account can offer a broader spectrum of benefits rather than just FPS. For example, having several bank accounts allow businesses to seek banking cost optimization and increased trust in their trading partners.
How To Get Access To Faster Payments?
Access to Faster Payments is typically facilitated through banks or financial institutions based in the UK. So first step is to open a bank account in the UK with a GB IBAN. You can find more information on how to do that in our article here. If you are looking to open a bank account in the UK right now, reach out to us and we will provide you with an up to date list of digital banks that can support FPS for a non-UK company.
Once you have a bank account in the UK, enroll in online banking services provided by your bank. This is often a prerequisite for using Faster Payments, as transactions are typically initiated through online channels. Moreover, if your business has a high volume of payments, you might want to check for Mass-Payments functionality and API integration.
Do not forget to ensure that your business complies with any regulatory requirements related to Faster Payments. Your bank may request specific documentation or information regarding some of your payments, such as invoices or contracts that support purpose of those payments.
Lastly, keep yourself updated on any changes to the Faster Payments system. Banks may introduce features or fixes that can positively or negatively affect your business operations.
In this article, we explored how non-UK companies can gain access to the Faster Payments system (FPS) for efficient cross-border transactions. By opening a UK-based bank account, enrolling in online banking services, and ensuring regulatory compliance, businesses can leverage FPS to improve cash flow, minimize transaction costs, gain a competitive edge, and foster trust with UK counterparts.