Pay.UK Introduces Flexible Liquidity Model for Faster Payments

Payments
03.07.2026 02:10 pm

Pay.UK, the recognised operator and standards body for the UK’s interbank retail payment systems, has gone live with a flexible model for liquidity requirements for Faster Payments Net Sender Caps (NSC), further facilitating access for a wider range of participants.

This change directly addresses one of the most significant barriers to direct participation for non-bank and non-traditional payment service providers (PSPs) by reducing pre-funding requirements and lowering the cost of access. It builds on Pay.UK’s ongoing work to broaden access to UK payment systems since 2018, which has seen direct participation in Faster Payments grow from 26 to 47 organisations, reflecting a more diverse and competitive ecosystem. For non-banks, the financial impact could be significant– enabling them to optimise how they manage their funds, supporting more efficient use of capital and improving overall flexibility in how they operate.

Rather than mandating a fixed Minimum Net Sender Cap (MNSC) and Peak Contingency Value (PCV) that direct settling PSPs must always hold within their Bank of England Pre-Funding Account, participants will now be able to propose their own NSC limit. Compensating controls will continue to be managed by Pay.UK – similar to how the Bacs Debit Cap operates – providing greater flexibility for participants while ensuring a robust, centrally governed framework that maintains market stability and liquidity discipline.

This revised model will enhance liquidity utilisation across the ecosystem, enabling PSPs to optimise their real-time gross settlement (RTGS) account balance management and improve financial agility through greater control over their NSC setting during non-peak periods. PSPs will also retain the option to follow the current prescribed MNSC and PCV values.

David Morris, Chief Operating Officer at Pay.UK, said: “This is an important step forward in making Faster Payments more accessible, and flexible. It gives participants greater control over their liquidity by lowering barriers to entry without compromising the robust controls that underpin confidence in the system.”

Simon Eacott, Head of Payments at NatWest, commented: “We welcome the introduction of the new, more flexible Net Sender Cap model for Faster Payments. Allowing participants to set caps aligned to their own payment flows and risk profiles is a positive step forward for the industry. For NatWest, this approach supports more efficient liquidity management while maintaining the resilience and reliability that customers expect from real-time payments. We’re pleased to be working with Pay.UK on this initiative and see it as an important step forward in how Faster Payments continues to scale safely and effectively.”

Pay.UK is executing a focused strategy to deliver continued reliability, value and efficiency to its participants and everyone who relies on its payment systems. As the UK payments landscape continues to diversify beyond traditional banking models, this development marks a meaningful step towards a more open and accessible payments ecosystem.