TheChaps Euro clearing systemwill close
afternine years of serviceat the end of
today (16 May).
The system began operation in January 1999, and used the same
settlement mechanisms as its sister service Chaps Sterling to
provide a same-day domestic euro service as part of Target (the
network of inter-linked national euro systems).
Clearing organisation Apacs said the decision to decommission
the Chaps Euro service was taken after reassessing the UK's stance
on the Euro, together with looking at current transaction volumes
and other options now available for making euro payments.
In the first quarter of 2008, the number of Chaps Euro payments
were at the lowest ever, with only 940 cheque or credit payments
being processed in the first quarter.
In comparison, there were 2,019 payments processed during the
first quarter of 2007.
When Chaps Euro was created in 1999, the UK was still
contemplating joining the euopean currency. However, over time the
UK's stance has become clearer, making the case for continuing to
participate in the clearing system considerably weaker, said
Apacs.
Apacs started to migrate to other Euro clearing systems from
last November.
Chaps company manager David MacFarlane said, "While in
operation, the Chaps Euro service provided the UK with an
efficient, safe and reliable method for making euro payments.
"However, as time has progressed, options have emerged and
evolved, and it is vital that the UK adapts with the times if it is
to continue to offer payment users the best possible options for
making payments."