Payment service providers wishing to become an indirect participant in a payment system should first approach a direct participant in that payment system to discuss provision of services. These services are provided on a commercial basis arranged directly between the direct participant and the indirect participant and the companies operating the payment systems have no involvement in organising this.
The following institution types are eligible to apply for indirect participation in the payment systems:
- Authorised payment institutions
- Small payment institutions
- European Economic Area (EEA) authorised payment institutions
- Credit institutions
- Electronic money institutions
- The Post Office Limited
- The Bank of England, the European Central Bank and the national central banks of EEA states other than the United Kingdom
- Government departments and local authorities.
Payment service providers becoming an indirect participant in a payment system will be allocated sort codes for that payment system by the direct participant who will be settling payments for those sort codes on their behalf.
Further information about sponsoring payment service providers that offer these services.