Bacs payments in 2025: Volume growth, compliance, and the shift to real-time

Let’s be honest, in the world of finance and operations, Bacs doesn’t always get the spotlight. It’s not flashy, and it’s certainly not new. But in 2025, it’s still quietly moving billions of pounds every single day, and that’s worth paying attention to.

This year, Bacs payments are at a fascinating crossroads. On one hand, we’re seeing impressive growth in payment volumes. On the other, businesses are grappling with increasingly complex compliance requirements. And just beyond the horizon? A growing shift towards real-time payments that could redefine how we think about the entire ecosystem. Here we’ll be diving into the current state of Bacs, how it’s adapting (or not), and what finance professionals need to know as we move deeper into the year.

 

Bacs isn’t going anywhere – Yet

Despite the buzz around real-time payments and digital wallets, Bacs remains a staple. For thousands of UK businesses, the Bacs method of payment is the dependable workhorse for paying salaries, suppliers, pensions, and more. In fact, in 2024 alone, Bacs processed over 6.8 billion transactions, and that figure is on track to rise again in 2025.

Why? Reliability. Cost-efficiency. Familiarity. For payroll especially, payment via Bacs is still the preferred option for many finance teams. But that doesn’t mean it’s immune to disruption.

With more businesses offering financial services within their platforms, Bacs integration has become a key feature for many fintechs, allowing users to move money smoothly and affordably.

 

Payment volumes are still rising

Bacs may be traditional, but its usage is growing. In part, that’s due to a post-pandemic shift in how businesses manage recurring payments. There’s also been a surge in SMEs adopting automated systems, and Bacs is often the first step in that journey.

Another big driver is embedded finance. With more businesses offering financial services within their platforms, Bacs integration has become a key feature for many fintechs, allowing users to move money smoothly and affordably.

So yes, Bacs payments 2025 are alive and well. But growing usage comes with its own set of challenges, especially when it comes to compliance.

 

Compliance pressure is heating up

Let’s talk about Bacs compliance. As financial regulators clamp down on fraud, anti-money laundering (AML), and data privacy, businesses are feeling the squeeze. For those managing bulk payments or sensitive payroll data, the risk profile is climbing, and so are the expectations.

In 2025, it’s no longer enough to simply process your Bacs file and call it a day. Companies are now expected to:

• Maintain rigorous audit trails
• Secure sensitive payment data end-to-end
• Ensure employee and supplier data is always up to date
• Regularly review access controls and user permissions

And it’s not just about ticking boxes. Failure to comply can lead to serious reputational and financial damage. That’s why more organisations are turning to integrated platforms that embed compliance features directly into the payment workflow, rather than relying on manual checks or third-party systems.

 

Real-time payments are nudging Bacs to evolve

Here’s where things get interesting, the UK’s broader payment landscape is undergoing a transformation. Faster Payments, CHAPS, and the soon-to-launch New Payments Architecture (NPA) are changing what’s possible, and what’s expected.

Real-time payments are gaining ground, especially for urgent supplier payments, refunds, and gig economy wages. Customers and employees alike are getting used to instant gratification, and that’s putting pressure on traditional methods like Bacs.

So, what does this mean for the Bacs method of payment? It doesn’t mean extinction. But it does mean evolution. Finance teams now need to ask:

• When is Bacs the right tool?
• When is real-time a better fit?
• Can our systems handle both, and switch seamlessly depending on need?

This hybrid model is becoming more common, and smart finance leaders are building it into their operations.

 

How finance teams can future-proof their Bacs strategy

If you’re handling payments at scale, whether it’s payroll, supplier settlements, or recurring transfer, it’s time to give Bacs a bit more attention. Here’s how to future-proof your strategy:

• Invest in integrated payment platforms

Legacy systems and spreadsheets won’t cut it anymore. Use platforms that connect directly with your banks, ERPs, and HMRC. This helps reduce errors, speed up approvals, and keep you compliant.

 

• Automate your audit Trails

Compliance doesn’t have to be painful. Automate logging, reporting, and exception handling so you’re ready for any regulatory inquiry.

 

• Add real-time flexibility

Bacs works great for regular, non-urgent payments. But real-time capability is increasingly vital for exceptions. Make sure your payment stack can do both.

 

• Don’t ignore the user experience

Whether it’s your finance team or your suppliers, payment tools should be intuitive. Complexity leads to mistakes, and mistakes cost money.

 

• Stay informed

The UK payments landscape is shifting fast. Keep up with changes from Pay.UK, HMRC, and the Financial Conduct Authority to make sure your Bacs strategy stays aligned.

 

What about Bacs itself?

You might be wondering if the Bacs scheme itself is adapting fast enough. In short,  it’s trying. While the core framework hasn’t changed much in years, there’s now talk of Bacs being more closely integrated with the New Payments Architecture over time.

There’s also more pressure on Bacs bureaux and software providers to modernise. That includes better APIs, enhanced file validation, and more secure data handling.

At AccessPay, we’re seeing growing demand for Bacs integration that works hand-in-hand with real-time capabilities,  allowing businesses to choose the right rail for each payment without switching tools. That’s where the future is heading.

 

Where Bacs goes from here

Bacs payments in 2025 are not a relic of the past, they’re a crucial part of the financial ecosystem. But their role is shifting. With volume up, compliance tightening, and expectations around speed rising fast, finance teams can’t afford to take a passive approach.

The key isn’t abandoning Bacs, it’s upgrading how you use it. By integrating compliance, enabling hybrid payment options, and automating manual processes, you can stay ahead of the curve while keeping your payment operations smooth and secure.

At AccessPay, we help businesses navigate this complexity with a platform built for the future. So, whether you’re deep in Bacs today or eyeing the real-time rails of tomorrow, we’ll make sure you’ve got the flexibility to do both, and the confidence to do it right.