Bacs in the age of instant payments: What’s next for bulk payment processing?

When you think of speed in the world of finance, Bacs probably isn’t the first system that springs to mind. And yet, for decades it’s been a stalwart of UK business payments, quietly handling billions of pounds every week. In 2025, however, things are starting to shift. The age of instant payment processing is here, and it’s changing the way businesses think about their payment operations. But where does that leave Bacs payments?

 

In this piece, we’ll explore the future of Bacs in a landscape dominated by speed, transparency, and flexibility. From the rise of real-time expectations to the opportunities created by smarter automation and tighter compliance, we’ll take a look at what finance professionals need to know now to stay ahead.

 

The role of Bacs in a real-time world

Let’s start by answering a common question, is a Bacs payment instant? The answer, in short, is no. Bacs payments typically take up to three working days to clear. And while that might have been just fine ten years ago, today’s business landscape has evolved. Buyers expect goods faster, salaries need to land on time (even when payday falls on a bank holiday), and suppliers want certainty.

 

That’s where instant payment processing has taken centre stage. Services like Faster Payments and the rollout of ISO 20022 messaging are driving a real shift in expectations. Businesses, particularly those with high-volume transactions, want more than just predictability, they want speed and visibility. 

 

But does this mean Bacs is on the way out? Not necessarily. Bacs still plays a crucial role in bulk payment processing. It’s cost-effective, reliable, and widely supported across the banking network. For large payroll runs, supplier payments, and direct debits, Bacs continues to offer excellent value. The challenge isn’t in replacing it, but rather in complementing it with faster, smarter systems.

 

Bulk payment processing still matters

Despite the rise of instant options, bulk payment processing is far from obsolete. For finance teams handling thousands of transactions at once, it offers structure, efficiency, and a straightforward reconciliation process. Think about the alternative: imagine trying to pay each of your 2,000 employees via an instant payment solution, one by one, with no batch capabilities. It’s not just impractical, it’s expensive.

 

This is where Bacs excels. Its batch-based nature means it remains the go-to for planned, recurring transactions. And when integrated with modern automation platforms, it doesn’t have to be slow or clunky. The problem arises when businesses are locked into legacy systems that can’t flex or adapt. The future of Bacs isn’t about choosing between speed and scale. It’s about enhancing both.

 

Automation: Bringing agility to Bacs

One of the biggest shifts happening right now in payment operations is the move toward automation. And it’s here that Bacs has a huge opportunity to evolve. Modern finance teams are no longer satisfied with manual CSV uploads or disconnected approval workflows. They want straight-through processing, API integrations with ERPs, and audit trails that update in real time.

 

When paired with the right automation platform, Bacs payments can become part of a seamless, intelligent flow. Authorisations, fraud checks, compliance reviews, they can all be managed in-platform, without needing to log into separate systems. AccessPay, for example, helps businesses bridge the gap between their finance systems and the bank, streamlining bulk payments and reducing operational risk. It’s this kind of smart integration that will allow Bacs to remain relevant in an era of instant gratification.

 

Bacs and the compliance question

Another big consideration for businesses right now is compliance. With regulations around fraud prevention, data privacy, and auditability tightening each year, finance teams can’t afford to rely on outdated processes. This is especially true when it comes to bulk payments. The volume of transactions makes these systems a prime target for error or exploitation.

 

Automation again plays a key role here. By ensuring that every step in a payment journey is logged, approved, and traceable, businesses can meet their compliance obligations without slowing down operations. Add in features like dual approval, user access controls, and automatic reconciliation, and Bacs payments can remain a secure part of your payment strategy.

 

The advantages of instant payments and their limits

There’s no doubt that the advantages of instant payments are reshaping the way we do business. Whether it’s improving supplier relationships, enabling better cash flow visibility, or offering customers immediate refunds, instant options are powerful tools. But they’re not a silver bullet.

 

Instant payment processing comes with its own challenges. Costs can add up quickly for high-volume use. Not every bank supports the same standards. And the infrastructure, while improving, isn’t always ready for true end-to-end automation. That’s why a hybrid approach is becoming increasingly popular. Businesses are mixing Bacs and instant rails depending on the use case. Payroll? Bacs. Emergency supplier payment? Instant. Recurring direct debit collections? Bacs. Urgent refunds? Instant. The key lies in flexibility.

 

What businesses should do now

So, what does all this mean for your finance or operations team? Here are a few practical steps to consider:

 

• Audit your payment mix

Understand what proportion of your outgoing payments are processed via Bacs, instant, CHAPS, or otherwise. This helps identify gaps or inefficiencies.

 

• Review your automation tools

Are your current systems integrated with your bank? Do you have end-to-end visibility of payments? If not, consider exploring platforms like AccessPay.

 

• Think strategically about speed vs cost

Not every payment needs to be instant. But some do. Create a policy that aligns payment method with urgency, volume, and value.

 

• Prioritise compliance

Ensure your payment processes support current regulations and can adapt to future ones. This is especially important for businesses operating across multiple jurisdictions.

 

• Prepare for the future

Keep an eye on developments in Open Banking, ISO 20022, and digital currencies. These innovations will influence the payment ecosystem in years to come.

 

Bacs and the road ahead

Bacs payments may not be flashy, but they’re far from finished. In fact, with the right upgrades, they can continue to form the backbone of reliable, compliant, and cost-effective bulk payment processing.

 

In a world racing toward real-time everything, it’s easy to overlook the quiet workhorses that keep business running smoothly. But finance professionals know better. By combining the scale of Bacs with the flexibility of instant payment processing and the intelligence of automation, businesses can create a future-proof strategy that delivers on all fronts.

 

Because in the end, it’s not just about speed, it’s about smart, scalable payments that meet the moment. Whether that moment is now or three working days from now.