On 1 January 2022, the UK Faster Payments Service (FPS) transaction limit increased from GBP 250,000 to GBP 1 million. The increase, announced by Pay.UK in 2021, represented a major expansion of the types of payments that could settle through the instant channel rather than requiring CHAPS for same-day finality.
Background
When FPS launched in 2008, the initial transaction limit was GBP 10,000. Over the following years, the limit was progressively raised - to GBP 100,000 in 2010, GBP 250,000 in 2015, and finally GBP 1 million in 2022. Each increase expanded the addressable market for instant payments and reduced reliance on CHAPS for mid-value transactions.
Impact
The GBP 1 million limit brought a significant portion of previously CHAPS-only payments into FPS scope. Property transactions, corporate payroll runs, and mid-market treasury transfers could now settle in seconds rather than waiting for CHAPS processing windows.
However, individual sending institutions retained the ability to set their own lower limits based on risk appetite. Not all banks immediately offered the full GBP 1 million for all customer segments. The limit represented the scheme maximum, not a guarantee that every bank would support it for every customer type.
Broader Trend
The UK's progressive limit increases reflected a global pattern. SEPA Inst raised its limit from EUR 15,000 to EUR 100,000. India's IMPS and UPI progressively raised their limits. The direction across all markets was clear: instant payments were moving from small retail transactions toward handling an increasing share of the overall payment mix.
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