The Association of Payment Clearing Services have agreed that by next year, internet payments will be credited or debited straight away.
The new payment system was announced after it met last week to discuss modernising the 200-year-old cheque clearing system. Cheque and debit card payments could also be speeded up under the reforms.
At the moment, payments made from an internet bank to another bank or building society take at least three days. Critics say banks take advantage of delays to earn interest on the floating money.
Government's banking watchdog Don Cruickshank called the current system 'cumbersome and inflexible' and 'only slowly adapting to the demands of e-commerce' in his recent report.