CHAPS forecasts resilient volume growth
The long-term volume growth forecasts for CHAPS demonstrate resilient demand for the UK’s same day high-value payment method despite wider medium-term economic uncertainty, according to a new report published by CHAPS Co.
The CHAPS Market Forecasts 2017 report predicts that, following a period of adjustment post-Brexit, CHAPS volumes will recover in line with the UK and global economy and with international trade. By the end of CHAPS Co’s 10-year horizon, CHAPS volumes are expected to increase steadily, reaching 43.5 million payments in 2026, partly through more focused and specialised CHAPS use.
This resilience in CHAPS volumes is expected partly as a result of the Bank of England’s blueprint for a renewed Real Time Gross Settlement service for the UK. As part of the RTGS blueprint proposals, the number and range of banks and non-banks able to hold settlement accounts and access CHAPS/High Value Payment System directly is planned to grow. The expected increase in direct participation will externalise CHAPS payment traffic, partially contributing to the forecast growth in CHAPS volumes in the long-term.
Furthermore, growth in international payments in the new digital economy is expected to counterbalance Brexit effects on CHAPS volumes and migration to alternative payment methods, particularly in corporate treasury and wholesale financial payments.
Tim Everest, chief operating officer of CHAPS Co, said: “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.
“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.”