Real-Time Payment Services in the UK and Estonia

The Single Euro Payments Area (SEPA) Instant enables instant euro payments, while Faster Payments handles real-time pound transactions.

Faster Payments began operations in May 2019, but its launch was delayed by Pay.UK due to legal uncertainties arising from Brexit. These legal issues were related to the separation of common frameworks shared with Estonia and other entities.

In response to these changes post-Brexit, Estonia’s Credit Institutions Act was amended. This update facilitated LHV’s ability to introduce pound payment services, which are now accessible to its customers.

LHV’s clients can also benefit from safeguarding accounts, Virtual IBANs, currency exchange, liquidity management tools, and financing opportunities through the bank’s API service called LHV Connect.

Faster Payments Domestic offers near real-time pound transfers of up to GBP 250,000 per transaction. This initiative aims to reduce payment times from standard three working days using BACS systems to mere seconds.

The Faster Payments system is designed for fintechs and financial intermediaries to facilitate domestic payments in the UK as well as track account balances in real time via integration with LHV Connect.

LHV Group’s Presence in the UK

LHV Group is an Estonian financial group focused on providing capital services. Its principal subsidiaries include LHV Pank and LHV Varahaldus. In 2018, it set up a branch in London to cater to corporate clients of its financial intermediaries.