Faster bank payments system set to launch

Consumers will be able to move money between bank accounts and pay bills faster once a new system is launched in November.

The faster payments system will enable standing order payments, which currently take three days, to be cleared more quickly and will allow online or phone payments to be completed within a couple of hours, according to the UK payments body Apacs.

Chief executive of Apacs Paul Smee said: "This service will be great for any customer wanting to move money quickly - perhaps to pay a bill or move money between accounts.

"Like the internet, it will be available all day, and will move a payment within a few hours and on any day of the week."

Internet, phone and standing order payments currently account for only seven per cent of automated payments, although this is growing fast as customers turn to these rather than more old-fashioned methods such as cheques.

Currently 13 organisations will be playing founding roles in the new scheme, including major high street banks and financial institutions, which together account for 95 per cent of payments in the UK.