The UK’s Faster Payments Service (FPS) may soon be administered by an Indian company. According to Sky News, Tata Consultancy Services (TCS), a subsidiary of the Tata Group, is in the running to take over management of FPS.
All Eyes on Tata
FPS handles more than 90% of salaries, over 70% of household bills, and virtually all state benefit payments. Currently managed by Vocalink, a British company owned by Mastercard since 2017, FPS was established in 2008 to complement the BACS system for faster transaction processing.
However, FPS has faced criticism recently for falling behind more advanced payment systems abroad. A report released in November 2023, titled Future of Payments Review, highlighted that FPS is now slower than its foreign counterparts and called for the adoption of open banking technology to challenge industry giants Mastercard and Visa.
The potential transition to Tata has raised concerns given the recent controversies surrounding another part of the Tata Group. Tata Steel’s job cuts in Wales, partly funded by a £500 million government grant, have sparked debate over its environmental practices.
In January 2024, TCS CEO K. Krithivasan announced that the company would focus more on growth opportunities outside North America, including Latin America, Southern Europe, and Japan.
The FPS administration is currently suspended pending the UK government’s publication of its Vision for Payments, a new strategy document for the sector.
