NPA Deliverables

Question 1

NPA
What is it ?
Who implements it ?
Who regulates it ?

Answer 1

New Payment Architecture
The UK payments industry’s proposed new way of organising interbank payments. 
PAY.UK is responsible for delivery.

Payment Systems Regulator

Question 2

Clearing

Answer 2

the process of transmitting, reconciling and, in some cases, confirming transfer orders prior to settlement, potentially including the netting of orders and the establishment of final positions for settlement.

Question 3

Settlement

Answer 3

Settlement, in payment processing, means the transfer of funds from one party to another based on a transaction.

Question 4

FPS - maximum value, settlement time

Answer 4

The service facilitates real-time payments of up to £1m. Near instant but can take up to 2 hours

Question 5

FPS availability - time/days

Answer 5

365 days 24/7

Question 6

PSD2

Answer 6

Payment Services Directive - Aim of Payment Services Directive Two (PSD2) is
* further develop and enhance market for electronic payments
* an EU piece of legislation
* designed to force providers of payment services to improve customer authentication processes
* open payments markets to new entrants

Question 7

FPS cancellation

Answer 7

Faster Payments cannot be cancelled. Too quick

Question 8

Credit Payment Recovery

Answer 8

A service to try and recover a payment once it has gone

Question 9

Confirmation of Payee

Answer 9

Confirmation of Payee is a name checking service for UK-based payments which Pay.UK launched in 2020. Confirmation of Payee is a way of giving payers greater assurance that their payments are being routed to the intended recipient and therefore are not being accidentally or deliberately misdirected. In particular, it addresses certain types of authorised push payment fraud by providing a platform for PSPs to provide effective warnings to payers about the risks associated with progressing with a payment to an account where the name does not match.

Question 10

OBIE - Open Banking Implementation Entity

Answer 10

• Private body; its governance, composition and budget set by CMA
• Funded by nine largest banks
• Overseen by CMA, FCA and Treasury

Aim is to give people real control over their financial data via Open Banking Initiative

Question 11

What will NPA replace ?

Answer 11

BACS and FPS.
But, BACS has been put oh hold at the moment