CHAPS has emerged as one of the biggest high-value payment systems in the world, handled an average of £395 billion in settlements per day of the previous year. This involves major institutions making wholesale payments as well as private individuals purchasing pricey goods like automobiles or homes.
The payments Industry and the Bank of England is collaborating closely on reshaping the payment landscape. The migration of the UK’s CHAPS, which is high-value payments system to ISO 20022, which is emerging as worldwide financial communications standard has been successful completed .
The multi-year effort to update the Bank’s Real Time Gross Settlement (RTGS) service has reached a key turning point with migration. The payments environment will become more resilient, competitive, and innovative as a result.
It also signifies a significant turning point in the global switchover of payments to ISO 20022. The ISO 20022 standard permits the sending of more data in a more organised manner together with payments.
An open international standard called ISO 20022 has the ability to unify most payment systems worldwide through single common language and bring about a host of advantages.
By November 2025, when SWIFT is expected to retire its current MT messaging standard for cross-border payments, several nations are planning to embrace ISO 20022.
CHAPS has emerged as one of the biggest high-value payment systems in the world, handled an average of £395 billion in settlements per day of the previous year. This involves major institutions making wholesale payments as well as private individuals purchasing pricey goods like automobiles or homes.
The Bank intends to enforce specific components of improved data inside CHAPS starting in November 2024 in order to aid in realising the full benefits of the ISO 20022 communications standard.
The G20 commissioned the FSB Roadmap, which lays out a high-level plan of objectives and benchmarks for resolving long-standing issues with the high prices, slow speeds, restricted access, and insufficient transparency related to cross-border payments. One of the main ‘building blocks’ for this plan is the adoption of a standardised ISO 20022 version for communication formats.
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