Consumers who make cash transfers over the phone or via the internet will soon benefit from a faster payment service, according to the industry body Apacs.

From 27 May 2008 such one-off transactions made across the UK will take just one day to process rather than the current three.

The new payment infrastructure has cost the banking sector hundreds of millions of pounds to develop and implement, said a spokesperson for Apacs.

‘It will be a 24-hour a day, seven day a week service and transfers will happen immediately,’ she said.

Apacs also claim that the improved system will reduce the time taken to action standing order payments.

The banking body was forced to postpone the implementation of the faster payment service last year upon realising its initial deadlines were ‘tighter than expected’.

Statistics indicate that phone and internet transactions account for 4% of all payments in the banking system, whilst standing orders make up a further 9%.