What has Faster Payments achieved? Faster Payments has created three main models for access, summarised below: Indirect Agency: Direct Member: This is today how most non-banks and current This enables members to connect directly into FinTechs like APS access Faster Payments. This the Faster Payments Central Infrastructure to send option enables a PSP (the Indirect Agency) to and receive Faster Payments. Directly connected generate a Faster Payment request via its Direct members also perform their own settlement with Member Agency Sponsor (typically a high street the BoE. This is the ‘Holy Grail of Access’ for many bank). The Direct Member then applies the funds, non-banks, as it provides the greatest freedom for subject to its own rules for compliance. In this innovation and control of a member’s own destiny. instance the Indirect Agency is reliant on the Direct Faster Payments membership was modified Member for both access to the technology platform in the run up to the establishment of the PSR to and access to the BoE settlement platform. allow membership to non-banks for the first time. However, Direct Membership is subject to having a Drawbacks: It is the lack of control offered settlement account with the BoE and currently non- to Indirect Agencies, the poor number of banks banks are denied this. offering this service and subsequent inefficiencies – as outlined in detail earlier in the paper – that Drawbacks: The BoE has recognised that a has created the need for the PSR and its mission review into its own access model is required. However, as the BoE is only in the early stages It may be a number of years before any sort of of a review process for opening up access to settlement accounts to non-banks, it may be a action is implemented number of years again before any sort of action is implemented. to improve access for all payment providers. This would be a viable model in an open marketplace Moreover, while large established PSPs, including with no monopoly, though this is not currently the APS, have the transaction volume to justify the case with limited competition. cost of this model, the UK’s smallest and emerging 10 | Payment infrastructure: a call for fair and equal access for FinTech