Clearing house Bacs has partnered with BT to offer
customers faster, more reliable connections to its IP-based payment
network.
Two new services - delivered over an extranet or a DSL broadband
line - will give Bacs' 50,000 corporate customers faster payments
and a guarantee of 99.5% connection levels, according to Bacs and
BT.
Under existing links to the Bacs IP network - over the internet or
through a dial-up modem - companies may face delays in sending
payments to Bacs due to problems in connecting to the
internet.
The new twin-line extranet connection service, managed on behalf of
the user by BT and Bacs, costs £25,000 a year, plus a one-off
installation cost of £23,000.
The DSL connection service, which is about four times faster than
ISDN, costs £3,000 a year plus an additional charge of £3,000 in
the first year.
Bacs is currently migrating 50,000 corporate customers onto its IP
network. Users have until the end of 2005 to upgrade their Bacs
connection software before the old network is switched off.
Bacs customers will also have to ensure that their payroll
suppliers have updated their software to ensure payroll details can
be transferred in a suitable format to Bacs' IP network.
The tie-up with BT is part of a long-term strategy by Bacs to
broaden its technology services.
Earlier this year, Bacs announced a joint venture with a US
software company to provide an online bill presentation and payment
service for UK banks.
Mark Blowers, senior research analyst at Butler Group, said the
move to an IP network would improve service for Bacs customers and
provide new commercial opportunities for the clearing house.
"One of the benefits of moving to an IP network is that you can
improve connectivity and provide new services," he said. "It also
helps customers use broadband and move-away from dial-up access."