Money moved between accounts, either through the phone or online, will soon be transferred on the same day, says UK payment association APACS.
The new system will also cover standing orders, Apacs added. It will not come into effect until 2007, however.
In the digital age of instant communication, the time taken to transfer funds has been a major gripe among consumers when they compare current accounts.
“Back in May we pledged to speed up internet and telephone payments but the UK banking industry has now decided to go a giant stride beyond this to give customers a service whose speed and convenience is world class,” said Paul Smee, Apacs chief executive.
“Our new system will enable customers to use the internet or phone to make a payment that will reach the recipient’s bank account within a few hours.
“Crucially the service will also be available all day, every day and means that customers will have the flexibility and convenience of moving money between accounts or paying bills on the same day within a few hours and on any day of the week.”
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