How do digital payments work?

Most of us give or receive money every day, and many of us use digital payments as our preferred method. But very few people know about how they really work and even fewer know what the Bank of England does to make sure the transfers are instant and effortless. Zach, banking and securities operations manager at the Bank, talks to Jamilla Blake about the real-time gross settlement (RTGS) system, which facilitated payments worth £94 trillion in 2025 alone. He explains how commercial banks, building societies and payment service providers hold accounts at the Bank, and how this allows the RTGS to record and transfer what’s owed between those firms. He also tells us why the Bank is essential to making sure everyone gets what they are owed in a secure and efficient way. This episode, Tom Heath takes to the streets, seeing how much people in the City really know about digital payments. ℹ️ This video is not financial advice. The views expressed in the podcast are those of the hosts and guests, and not necessarily those of the Bank of England or its committees.