Bacs' IP network welcomed
Plans by UK clearing house Bacs to slash the three-day cycle for clearing payments by moving to a new Internet-protocol-based...
Nick Huber
The new IP network will allow Bacs' members to process transactions more quickly and develop a next-day service for processing direct debits and credits.
Analysts hailed Bacs' IT blueprint as a significant step forward for the UK payment industry, but added that competing banks may struggle to agree common security standards for the new network and payment services.
"It is good news for batch processing but the big challenge will be getting the banks to decide on a common structure and security protocol," said Mark Simmons, senior analyst at Bloor Research.
Banks will also have to integrate their IT systems with the new IP network and work closely to develop the technology to underpin new payment services.
