What is the function of a centralized directory in Faster Payments?

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The function of a centralized directory in Faster Payments is essential for ensuring that payment systems can effectively and efficiently connect payers with payees. Specifically, a centralized directory serves to map an alias—such as an email address or phone number—to its Payment Service Provider (PSP) and the corresponding account number. This mapping is crucial for enabling users to send and receive payments without needing to know the actual account details of the recipient, thereby simplifying the payment process and enhancing user convenience.

This system streamlines transactions, reduces errors, and increases the speed of payments, as users can use familiar identifiers instead of complex account numbers. Overall, the centralized directory plays a vital role in creating a seamless payment experience in the Faster Payments ecosystem.