16 August 2007
The roll-out of a £300 million banking system allowing same-day money transfers made via telephone and the internet has been put on hold.
According to APACS, the faster payment scheme has run into difficulties with security meaning that its initial launch date of June 2007 will now be delayed for another 12 months.
The system would mean the end of banks' three day clearing period on transfers - a similar length of time as it takes for cheques to clear - allowing payments to be received on the same day.
In a statement the payments association said that pushing the launch date back "will allow sufficient time for the further rigorous testing required...by banks to ensure customers can benefit from safe and secure faster payments".
"The UK banking industry is disappointed that we won't be able to deliver the new faster payments system as quickly as we had planned," said Paul Smee, APACS' chief executive. "But there is no room for error when launching a system which forms part of the UK's economic infrastructure.
"Clearly, it is more important to make sure it is done with our total confidence than rushed to meet a self-imposed delivery date."
Indeed, the Office of Fair Trading (OFT) has explained that the delay in the scheme's inauguration is vital in ensuring customers' safety is not breeched.
"The stability of the UK payments system is of paramount importance and should not be put at risk," it said in a statement.
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