There are different ways to access Faster Payments (FPS) via API: either directly through scheme connectivity (e.g., clearing banks or infrastructure providers) or indirectly via a clearing bank or a third party. 

In the UK, Faster Payments is the default rail for real-time, account-to-account money movement. For fintechs operating at scale – wallets, marketplaces, lenders, payroll platforms, and payment service providers – FPS is foundational infrastructure.  

Customers expect:  

• Payments to arrive in seconds 
• 24/7 x 365 availability, including weekends and holidays 
• Immediate confirmation and balance updates  

The key decision is how to access Faster Payments via API. Broadly, fintechs choose between: 

• Becoming a direct participant in the Faster Payments scheme, or 
• Accessing the scheme indirectly via a payments infrastructure provider 

Each model has different implications for cost, control, user experience, and regulatory responsibility. 

“Faster Payments is real-time by design, but whether it feels real-time depends entirely on how you connect to it.” Helena Lambert, Payment Expert at ClearBank 

The most direct way to access Faster Payments is to become a direct participant in the FPS scheme. In this model, the fintech holds its own settlement account, connects directly to the scheme, and meets all technical, operational, and regulatory requirements itself. 

How this model works 
The fintech integrates directly with Faster Payments, manages settlement at scheme level, and is responsible for payment processing, reconciliation, reporting, and compliance. Connectivity is typically built in-house or with specialist vendors. 

Examples 

• Banks with their own FPS membership, such as ClearBank 
• Large PSPs and EMIs with direct scheme participation, such as Modulr 

Pros 

• Maximum control over settlement, reconciliation, and payment logic 
• No intermediary dependencies 
• Direct access to scheme-level reporting and features 

Cons 

• Very high regulatory, operational, and capital requirements 
• Long implementation timelines (often 12+ months) 
• Continuous scheme testing and compliance obligations 

Best for 
Large, highly regulated financial institutions where payments infrastructure is a core internal capability. 

In this model, the fintech accesses Faster Payments via an infrastructure provider that is already a direct scheme participant. The provider maintains FPS membership and exposes scheme connectivity through an API. 

This is the most common model for fintechs at scale. 

How this model works 
The infrastructure provider handles scheme participation, settlement accounts, and regulatory obligations. The fintech integrates once via API to send and receive Faster Payments in real time, operating close to the rail without becoming a direct participant. 

Examples 

• Banks, EMIs and PIs that partner with a direct participant. 

Pros 

• Real-time FPS access without direct scheme participation 
• Lower operational and regulatory burden 
• Faster time to market than direct participation 
• Predictable scaling as volumes increase 

Cons 

• Some dependency on the provider’s infrastructure and controls 
• Less flexibility than owning scheme membership outright 

Best for 
Regulated fintechs and PSPs where payments are core infrastructure, but direct scheme participation would be inefficient or unnecessary. 

ClearBank is a technology-led UK clearing bank and a direct participant in Faster Payments, as well as Bacs, and CHAPS. 

Rather than fintechs building and maintaining their own FPS connections, ClearBank provides indirect access to Faster Payments through a single, API-first platform – combining scheme-grade connectivity with reduced operational complexity. 

• Payments are processed directly on the FPS rail 
• Status updates are delivered via real-time webhooks 
• Settlement and reconciliation are handled at bank level 

Because ClearBank sits directly on the scheme, fintechs can build experiences that depend on instant confirmation, such as: 

• Immediate wallet top-ups 
• Real-time payouts 
• On-the-spot balance updates

High-volume fintechs experience traffic spikes, seasonal peaks, and unpredictable demand. ClearBank’s infrastructure is designed to handle very high transaction volumes without requiring re-architecture as businesses grow. 

Faster Payments is often described as a real-time scheme, but the end-to-end experience depends heavily on how a provider connects to the rail. Legacy banks may technically support FPS but still introduce delays due to batch processing, legacy IT constraints, or asynchronous status handling. 

Providers built specifically for clearing infrastructure preserve the synchronous nature of Faster Payments, delivering immediate confirmation, predictable settlement behaviour, and real-time status updates. At scale, this difference matters. It determines whether payments can reliably sit inside critical user journeys, or whether they remain a background settlement mechanism. 

Just as importantly, ClearBank absorbs the regulatory and operational requirements of scheme participation. Becoming a direct FPS participant independently requires significant capital, continuous testing, and ongoing compliance. Using a clearing bank provides scheme-grade access without becoming a bank. 

Modulr combines direct access to Faster Payments and Bacs with an embedded payments platform. It is a direct participant in UK payment schemes and exposes this connectivity through an API designed for automation, reconciliation, and operational control. 

Modulr is commonly used for: 

• Lending and wage-advance platforms 
• Payroll and salary payments 
• B2B and supplier payments  

The value lies in offering direct rail access wrapped in tooling, reducing the need for fintechs to stitch together multiple providers. 

Before selecting a partner, it’s worth testing beyond feature lists. 

• Are you a direct participant in Faster Payments? 
• Do you rely on intermediaries? 
• Where does settlement occur? 

• Is FPS available 24/7 x 365? 
• What uptime have you delivered over the past 6–12 months? 
• How do you handle traffic spikes? 

• Are there any cut-off times? 
• Do you provide real-time webhooks and status updates? 
• How are failed or delayed payments handled? 

• Are you regulated as a bank, EMI, or payments institution? 
• Where are customer funds held? 
• Do you support safeguarding or segregated accounts? 

• Do you support real and virtual accounts? 
• Can you scale to millions of payments per day? 
• What SLAs apply during incidents?

Faster Payments is foundational infrastructure for UK fintechs. The right Faster Payments API – direct scheme participation or indirect access via infrastructure providers – depends on how central payments are to your product, how much control you need, and how quickly you expect to scale. 

The most important decision is choosing a provider that won’t just get you live, but will still be the right partner when you’re processing millions of real-time payments. 

A Faster Payments API allows fintechs to send and receive real-time, account-to-account payments over the UK’s Faster Payments Service (FPS). For high-volume products such as wallets, payroll platforms, lenders, marketplaces, and PSPs, this enables instant fund movement, immediate confirmation, and 24/7 availability. 

Because Faster Payments is the default UK payment rail, API access is essential to meet customer expectations for speed, reliability, and real-time balances.

Direct Faster Payments access means becoming a direct participant in the FPS scheme. The participant holds its own settlement account, connects directly to the scheme, and takes full responsibility for compliance, testing, and operations. This offers maximum control, but requires significant capital, regulatory approval, and long implementation timelines. 

Indirect access via an infrastructure provider allows a fintech to connect to Faster Payments via a clearing bank or payments infrastructure provider that already holds scheme membership. The provider manages scheme participation, settlement, and regulatory obligations, while exposing FPS connectivity through an API. This model delivers real-time payments without the overhead of direct participation. 

Yes. With indirect access, payments are still executed directly on the Faster Payments rail. The difference lies in who holds scheme membership and regulatory responsibility, not in the speed or availability of payments. 

When provided by clearing banks or purpose-built infrastructure providers, indirect access preserves the real-time nature of FPS, including immediate confirmation and 24/7 processing. 

The right provider depends on how central payments are to your product and how much control you need at scale. Key considerations include: 

• Whether the provider is a direct FPS participant 
• Where settlement occurs and who holds customer funds 
• Whether payments are processed synchronously and available 24/7 
• How the platform performs under high transaction volumes 
• How much regulatory and operational responsibility the provider absorbs 

For fintechs expecting millions of payments, long-term scalability, operational resilience, and scheme-grade access matter as much as speed to launch. 

Sources: 

• https://www.modulrfinance.com/newsroom/modulr-launches-its-sepa-instant-service-to-supercharge-real-time-european-business-payments 
• https://www.modulrfinance.com/product/pay-ins 
• https://www.modulrfinance.com/solutions/lending-and-wage-advance