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

The function of a centralized directory in the context of Faster Payments primarily revolves around mapping aliases to their corresponding Payment Service Providers (PSPs) and account numbers. This is crucial for facilitating seamless transactions, as it helps in identifying the correct destination account for a payment based on user-friendly identifiers, such as email addresses or phone numbers.

When a payment is initiated, the sender often uses an alias rather than a complex account number. The centralized directory acts as a lookup service that translates the alias into the precise account information associated with the relevant PSP. This streamlines the payment process, allowing for faster and more efficient transactions, which is the key premise of Faster Payments systems. Without such a directory, the process could lead to delays and complications, hindering the overall goal of achieving quick and reliable payment methods.

In summary, the centralized directory ensures that payment information is accurately matched, thereby enhancing the efficiency and effectiveness of the Faster Payments ecosystem. The other options, while relevant to financial services or user account management, do not specifically capture the primary role of a centralized directory in enabling Faster Payments.