10-03-2008
Competition to increase in money transfer market
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
Business finance could get a boost through increased competition among banking services providers.
Sandra Quinn of payments association Apacs said that charges for instant money transfers could soon become a thing of the past.
Commenting on NatWest's recent announcement that it will no longer charge for the service, Ms Quinn told BBC Radio 4's Money Box programme that competition between banking providers will increase.
"Banks will make their own decisions about whether they will charge, but certainly it's interesting that one major bank isn't going to," she said.
Instant transfers could become the default service, Ms Quinn continued.
Clearing times on money transfers will also become shortened from May 27th.
From this date, 13 financial services providers will reduce money transfer clearing times to two hours from the current three days.
Among these institutions are 12 banks and Nationwide Building Society.
Ms Quinn added: "I think the key thing is that when individual customers make any online payments after the 27th May, it will be the faster service people use."