Banks promise swifter payments system

The banking industry announced plans yesterday for a faster payment system enabling internet and telephone payments to be made on the same day. Before the end of 2007 people will be able to use the telephone or internet to make a payment that would reach the recipient's account within a few hours.

The length of time it takes for a standing order to be paid will be cut from three days to the same day, although this will only apply during banking hours. The move comes in response to a report by the Office of Fair Trading which criticised the length of time internet and telephone payments took to clear.