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Faster Payments revolution is UK is being driven by the SMEs. Finance Director: ‘We’ll never use che

The astonishing growth in Faster Payments (the online payment service for phone, the Internet and other payments) usage in 2012 - 54% by volume and 163 % by value - shows consumers and businesses just love the service. SMEs driving this growth.

A finance director of a £40m / year SME explains why he is a big fan of Faster Payments:

  • a first class stamp costs 60p while a next-day Faster Payment costs 37p
  • same-day Faster Payment costs £3 which is far less than the cost of paying by cheque + post and all the administration
  • there is no reason to use CHAPS any more (cost £16/transfer), we just make same-day payments by Faster Payments
  • we use next-day Faster Payments for our payroll run of 35 employees (no wonder volume of Forward Dated Faster Payments grew by 155%)
  • there is no reason to pay by card (except for T E) and we don't accept cards, we just ask to be paid by Faster Payments or BACS
  • the £100k / payment limit is a minor irritation; it means we have to make three payments to pay £250k, but our suppliers have gotten used to this

'We'll never use cheques or cards again. It's a no brainer.' He concluded.

Company invoices in UK now encourage payment by online or by BACS e.g.

Are Faster Payments and systems like MyBank, the pan-European online e-payment solution, the end of growth in the use of payment cards and the usage of ACHs? Real opportunities are opening up for serious cost savings and improved services.

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