Electronic payments to get faster

Friday, December 16, 2005

Payments over the internet or telephone are get to get faster as the UK payments association Apacs has completed the first phase of its project in to this area.

Apacs is responding to the fact that despite he huge growth in internet and telephone banking it can still take up to five days for payments to clear - netting banks an estimated £30 million in interest every year.

However, from 2007 banks will have to speed up the process following a ruling from the Office of Fair Trading's (OFT) Payments Systems Task Force in May this year.

Paul Smee, Apacs' chief executive, said: "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.

"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.

He added that the service will also be available all day, every day and will mean 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.

"Successfully delivering this new system by 2007 is going to be extremely challenging but the industry is confident it will be achieved," he said.
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