Definition of giro

The word "giro" has its origins in the Italian language, where it means a circular or spiral movement. In the context of finance, the term "giro" was first used in Italy in the late 19th century to describe a type of money transfer system that operated without the use of paper money or cheques. Instead, these transfers were made through a clearing system that settled accounts at the end of each day. The Italian "Giro Postale" was established in 1890 and served as a prototype for the modern-day system of electronic payments. The concept was soon adopted by other European countries, and the term "giro" became popular to describe similar domestic money transfer systems. In the UK, the term "giro" came to be used to describe a payment system operated by the Post Office, which was introduced in the 1960s. This system, known as the "Postal Orders and Giro System," allowed customers to deposit and withdraw funds at post offices, as well as make electronic payments and receive pensions and benefits. Today, the term "giro" is less commonly used in finance, as the majority of domestic money transfers are made electronically. However, the legacy of these systems can still be seen in modern-day payment methods, such as direct debit and standing order facilities, which operate similarly to the early giro systems by automatically transferring funds between accounts on a recurring basis.