PSPs require the option of a mid-way solution that BoE settlement is handled on the PSP’s behalf. works for them also. The technology gateways that connect a Direct Member to schemes such This solution offers PSPs much needed control as Faster Payments today costs £500,000 to build over how payments are initiated via the scheme and approximately £250,000 a year to support. – allowing innovation to flourish especially around Analysis completed by Faster Payments estimates device solutions (e.g. mobile) and the drive for that a PSP or any member of Faster Payments improved customer experience. As the PSP is would need to process over 1.2 million transitions a not reliant on the technology of the bank, it also year to make this model commercially viable. There needs to be a sense of realism and a APS will continue to lobby for direct access, but if commitment to a phased approach we want to collectively drive payment innovation sooner, for PSPs of all sizes, there needs to be a sense of realism and a commitment to a phased removes the risks associated with relying on legacy approach, so short term advancements towards infrastructure. wider access can be made. However, with the Direct Member managing the Direct Agency: BoE settlement, ultimately the PSP is still dictated by the compliance restrictions of a Direct Member. This model, as the name implies, is a hybrid of the The decision over who to service (such as MSBs), two models above, therefore potentially providing and what type of payments can be made would still a feasible short-term solution and a more cost- lie in the hands of the Direct Member. effective model for the smallest PSPs. Unlike the Indirect Agency model, this option provides a PSP Nonetheless, as this model can be implemented (in this case, the Direct Agency) with Direct Access in the short-term, without the need for immediate to the Faster Payments Central Infrastructure action from the BoE, it is important that we technology, but like the Indirect Agency Model, concentrate on driving this forward where possible. Payment infrastructure: a call for fair and equal access for FinTech | 11