TCS Edges Closer to Taking Over UK's Faster Payments Service

by Tareq Sikder
  • This initiative aims to streamline clearing and settlement by overhauling the Faster Payments.
  • Earlier, the Australian Securities Exchange replaced CHESS with the TCS solution.
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In the UK's financial technology landscape, Tata Consultancy Services (TCS) is poised to assume control of the country's Faster Payments Service. The move positions TCS as a formidable contender, surpassing the current operator, Mastercard-owned Vocalink, according to insiders familiar with the competitive procurement process.

New Payments Architecture Targets Streamlined Payment Processes

The transition comes under the purview of Pay.UK as part of the UK's ambitious New Payments Architecture initiative. This initiative aims to overhaul the existing Faster Payments and Bacs retail interbank payment system, streamlining clearing and settlement through a unified, purpose-built central infrastructure, as reported by Sky News.

In a statement issued by Pay.UK, the organization emphasized a thorough evaluation: "We have carefully examined prospective vendors and considered all relevant data, competition and regulatory requirements. We are now going through the necessary regulatory non-objection and assurance process. We will not comment further while the process is ongoing."

However, the journey towards TCS assuming control of the Faster Payments Service entails additional regulatory scrutiny. Both the Payment Systems Regulator and the Bank of England are tasked with reviewing the proposed transition. Notably, the process has been momentarily halted to accommodate the government's unveiling of its Visions for Payments strategy.

ASX Shifts Clearing and Settlements System to TCS Solution

Earlier, the Australian Securities Exchange (ASX) announced its decision to replace its clearing and settlements system, CHESS with TCS product-based solution, as reported by Finance Magnates. The move followed the abandonment of ASX's initial plan to implement a blockchain-based infrastructure in May 2023. The agreement with TCS aims to provide a reliable and scalable platform, with implementation planned in two releases, targeting completion by 2028 or 2029.

The estimated cost for the first release was between AU$105 million and AU$125 million. ASX also enlisted Accenture to support project delivery. ASX's CEO, Helen Lofthouse, emphasized the importance of meeting market needs and ensuring a smooth transition. The decision reflects a strategic shift toward modernizing Australia's stock market infrastructure while addressing industry demands and regulatory obligations.

In the UK's financial technology landscape, Tata Consultancy Services (TCS) is poised to assume control of the country's Faster Payments Service. The move positions TCS as a formidable contender, surpassing the current operator, Mastercard-owned Vocalink, according to insiders familiar with the competitive procurement process.

New Payments Architecture Targets Streamlined Payment Processes

The transition comes under the purview of Pay.UK as part of the UK's ambitious New Payments Architecture initiative. This initiative aims to overhaul the existing Faster Payments and Bacs retail interbank payment system, streamlining clearing and settlement through a unified, purpose-built central infrastructure, as reported by Sky News.

In a statement issued by Pay.UK, the organization emphasized a thorough evaluation: "We have carefully examined prospective vendors and considered all relevant data, competition and regulatory requirements. We are now going through the necessary regulatory non-objection and assurance process. We will not comment further while the process is ongoing."

However, the journey towards TCS assuming control of the Faster Payments Service entails additional regulatory scrutiny. Both the Payment Systems Regulator and the Bank of England are tasked with reviewing the proposed transition. Notably, the process has been momentarily halted to accommodate the government's unveiling of its Visions for Payments strategy.

ASX Shifts Clearing and Settlements System to TCS Solution

Earlier, the Australian Securities Exchange (ASX) announced its decision to replace its clearing and settlements system, CHESS with TCS product-based solution, as reported by Finance Magnates. The move followed the abandonment of ASX's initial plan to implement a blockchain-based infrastructure in May 2023. The agreement with TCS aims to provide a reliable and scalable platform, with implementation planned in two releases, targeting completion by 2028 or 2029.

The estimated cost for the first release was between AU$105 million and AU$125 million. ASX also enlisted Accenture to support project delivery. ASX's CEO, Helen Lofthouse, emphasized the importance of meeting market needs and ensuring a smooth transition. The decision reflects a strategic shift toward modernizing Australia's stock market infrastructure while addressing industry demands and regulatory obligations.

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