Bacs cookie policy

We use cookies on our website to provide you with the best possible online experience. By continuing to use this site, you give consent for cookies to be used. Please read our cookie policy for more information and details on how to change your preferences. Cookie Policy.

Half a century of Bacs payments – household name marks major milestone

17.4.2018

 

​A household name that launched before man walked on the moon, when mobile communicators only existed on sci-fi shows, and as Apple’s Steve Jobs was just entering his teens, marks its 50 th anniversary this month.

Bacs Payment Schemes Limited (Bacs), the organisation behind Direct Debit and Bacs Direct
Credit in the UK, is celebrating half a century of operation, having started life as the Inter Bank Computer Bureau.

And since those heady days when Cliff Richard was topping the charts with ‘Congratulations’ and film-goers were wowed by the likes of 2001: A Space Odyssey and Planet of the Apes, Bacs has become a staple part of the UK’s financial landscape.

In fact, a company that first opened its doors five decades ago has continued to thrive, breaking record after record, year after year, processing over 125 billion payments since launching. In 2017 alone, 6.35 billion transactions passed through the Bacs system, at a value of £4.9 trillion, including 4.2 billion Direct Debits.

Perhaps unsurprising when you consider that nine out of 10 adults in Great Britain have at least one Direct Debit commitment, while Bacs Direct Credit is used to pay over 90 per cent of the UK workforce, as well as a billion benefit payments, and pensions and dividends. Between the two payment types, a new combined daily record was set last year, too, with 111.7 million transactions processed in a single 15 hour window.

And that’s not all. Bacs also provides vital managed services to the sector and owns and manages the Current Account Switch Service, which has facilitated over 4.5 million account switches since 2013, and continues to be held up as an example of best practice.

Bacs’ chief executive officer is Michael Chambers. He said: “We provide access to some of the most important payment methods to an ever-more- demanding consumer, as well as to business, charities, government – almost everyone in the UK is touched by our products and services, which now extend far beyond our two core payment schemes.

“In 2017, between Direct Debit and Bacs Direct Credit, we set an annual record of 6.35 billion transactions, with a new high of 111.7 million payments processed in a single 15 hour window. To me, that demonstrates the continued importance of a company that has its roots in the 1960s, but its focus on the future.”

As Bacs reaches this important milestone, next month will herald another historic development as the organisation becomes part of the New Payment System Operator (NPSO), along with Faster Payments and the Cheque & Credit Clearing Company, which incorporates the Image Clearing System (ICS) that will replace the paper processing system for cheques. The new body will develop the capability and capacity of the UK’s retail payment systems, as well as develop the New Payments Architecture (NPA).

Paul Horlock, chief executive officer of the New Payment System Operator, said: “As Bacs reaches this important milestone, it is fitting that we also look forwards, towards what promises to be an exciting future for Bacs and the NPSO.

“Our new organisation will play an essential part in enabling a vibrant UK economy; facilitating a globally competitive payments infrastructure. We will provide robust, resilient, and collaborative retail payments services which benefit all of our many users, and Bacs will be integral to that.”

Key stats

  • Bacs launched in April 1968, known originally as the Inter Bank Computer Bureau
  • Direct Debit launched in 1970
  • 125 billion payments have been processed over last 50 years, which is greater than the number of people to have ever walked the earth
  • A record 6.34 billion payments were processed by Bacs in 2017
  • 4.2 billion payments made by Direct Debit last year, also a new high
  • A record 111.7 million payments were processed in a single day at the end of June 2017
  • Nine in 10 adults in Great Britain have at least one Direct Debit commitment
  • 90 per cent of UK workforce paid by Bacs Direct Credit
  • Films released in April 1968 included 2001: A Space Odyssey and Planet of the Apes
  • The likes of Tom Jones (Delilah), Cliff Richard (Congratulations), The Beatles (Lady Madonna) and Manfred Mann (Mighty Quinn) were all topping the charts when Bacs launched
  • The average cost of a house was yet to break the £4,000 barrier (£3,996*) and we were
    clamouring to drive the Austin Morris 1100.

*According to house price data published by Nationwide: https://bit.ly/2unX3Sc

For further information contact our press office​.​​​


 

 

Notes to editor:

About Bacs:

Bacs has been maintaining the integrity of payment related services since 1968, with responsibility for the schemes behind the clearing and settlement of UK automated payment methods, Direct Debit and Bacs Direct Credit, as well as the provision of managed services for third parties, such as the Cash ISA Transfer Service, and the development, management and subsequent ownership of the Current Account Switch Service.

More than 125 billion transactions have been debited or credited to British bank accounts via Bacs since its inception; in 2017, nearly 6.35 billion UK payments were made this way, while a new record was set on 30 June 2017 with the number of transactions processed by Bacs in a single day reaching a high of 111.7million.

A not-for- profit entity which has maintained carbon neutral status since 2012, and became carbon positive in 2017, Bacs is a membership company limited by Guarantee.

For further information please visit www.bacs.co.uk.

More about Direct Debit:

A Direct Debit is an instruction from a customer to their bank or building society authorising an organisation to collect varying amounts from their account, normally for regular payments for
everything from household bills to charitable donations. Almost nine out of 10 British adults have at least one Direct Debit commitment, with 73 per cent of household bills paid this way; 62 per cent of people in GB prefer to pay most bills by Direct Debit, and the number of people who feel positively towards Direct Debit reached 77 per cent in 2016. Over 4.2 billion Direct Debits were processed in 2017, and Direct Debit payments are protected by the Direct Debit Guarantee, a money back consumer safeguard.

For more information about Direct Debit, visit www.directdebit.co.uk.

About the New Payment System Operator:

NPSO Limited is the holding name for the company that has been set up to consolidate Bacs Payment Schemes Limited (Bacs), Faster Payments Scheme Limited (FPSL), and the Cheque & Credit Clearing Company Limited (C&CCC) which incorporates the Image Clearing System (ICS) that will replace the paper processing system for cheques currently managed by C&CCC. These retail payment systems, which process over £6.4 trillion pounds of payments every year between them, will be joined by UK Payments Administration Ltd (UKPA), which provides people, facilities and business services expertise to support the systems behind the payment system operations.

Bringing all of these retail payment services together will reduce complexity and risk, providing a platform for innovation. The company will support a vibrant UK economy by enabling a globally
competitive payments industry in the UK.

For more information about NPSO, visit www.newpso.uk.