TLDR:
- Tata Consultancy Services (TCS) is set to take over the UK’s Faster Payments Service, surpassing the current operator, Mastercard-owned Vocalink. This move comes as part of the UK’s ambitious New Payments Architecture initiative, which aims to overhaul the existing Faster Payments system.
- The transition process is currently being reviewed by the Payment Systems Regulator and the Bank of England. The government’s unveiling of its Visions for Payments strategy has momentarily halted the process.
- The Australian Securities Exchange (ASX) has also selected TCS to replace its clearing and settlements system, CHESS. This decision reflects a strategic shift towards modernizing Australia’s stock market infrastructure.
In the UK’s financial technology landscape, Tata Consultancy Services (TCS) is poised to assume control of the country’s Faster Payments Service, surpassing the current operator, Mastercard-owned Vocalink. This move comes as part of the UK’s ambitious New Payments Architecture initiative, which aims to overhaul the existing Faster Payments and Bacs retail interbank payment system. The initiative is focused on streamlining clearing and settlement through a unified, purpose-built central infrastructure.
The transition of control to TCS is currently under review by the Payment Systems Regulator and the Bank of England, and the process has been temporarily halted to accommodate the government’s unveiling of its Visions for Payments strategy.
In addition to the UK, TCS has also been selected to replace the clearing and settlements system of the Australian Securities Exchange (ASX). ASX initially planned to implement a blockchain-based infrastructure but abandoned the idea in favor of TCS’s product-based solution. The aim is 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 is between AU$105 million and AU$125 million.
The selection of TCS by both the UK and ASX reflects a strategic shift towards modernizing payment and stock market infrastructures while addressing industry demands and regulatory obligations.
