The U.K.’s Clearing House Automated Payments System (CHAPS) is forecasting growth over the next decade.
In a report published Wednesday (Oct. 11), CHAPS said it is planning on payment volumes hitting 43.5 million transactions in 2026, fueled by the system’s efforts to develop more specialized use-cases. The “CHAPS Market Forecasts 2017” report also noted that, while there may be a “period of adjustment” immediately following Brexit, payment volume through the scheme will rebound, fueled by economic growth in the U.K. and international trade.
The Bank of England’s Real Time Gross Settlement (RTGS) plans will play a key role in CHAPS growth, it said, because the initiative will enable banks and non-bank players to hold settlement accounts and gain direct access to the CHAPS/High Value Payment System (HVPS) solution.
“Following significant growth in direct participation in CHAPS during the past three years, and with support from the Bank of England’s RTGS blueprint proposals to increase access to the Scheme, CHAPS is set to onboard at record levels in the foreseeable future,” said CHAPS chief operating officer Tim Everest in a statement. “We look forward to facilitating greater access to CHAPS/HVPS while building on our trusted reputation for settling and delivering high-value sterling payments safely, securely and efficiently.”
CHAPS’ report predicts payment volumes will hit 43.5 million transactions to 2026, up from 39 million in 2016 and representing an annual compound growth rate of 1.9 percent. Corporate treasury payments using the HVPS will also play a significant role in the use of CHAPS, the company said, while banks and non-banks will also be key to increasing participation in direct access to the CHAPS payment scheme. Adoption of ISO 20022 messaging standards and growing acceptance of real-time payment capabilities can similarly help grow CHAPS use.
“For the past three decades, CHAPS has been providing increased levels of access and financial stability to the payments industry and it is this ability to adapt to the developing payments landscape that will enable us to continue meeting the evolving payment needs of our current and future participants and end users,” added CHAPS’ independent chair Herta von Stiegel, J.D., in another statement.