CHIPS® Breaks Payment Records This Black Friday with Unprecedented Volume
The CHIPS® network, managed by The Clearing House, recently set a new standard in high-value payment processing by achieving an extraordinary volume on Black Friday. This past November 29, the network cleared and settled an impressive 1,083,550 payments, with a total value of $2.63 trillion. This achievement highlights the importance of the CHIPS network as the largest private-sector high-value clearing and settlement system globally.
Several factors contributed to this unprecedented volume on Black Friday. One of the primary reasons was that Black Friday occurred after the U.S. Thanksgiving holiday, during which many foreign banks remained operational. As a result, these banks initiated transactions that could not be processed over the Thanksgiving holiday, leading to a surge in settlements on Friday. In fact, 95% of CHIPS payments pertain to U.S. dollar transactions tied to international funds transfers, emphasizing the network's crucial role in global finance.
Moreover, it is significant to note that the CHIPS network has seen increased transaction volumes since it transitioned to the ISO 20022 message format earlier this year in April. The adoption of this standard has aligned CHIPS messages with those used by other international high-value payment systems, which in turn has boosted efficiency and enriched the details accompanying cross-border payments for its users. According to Richard Dzina, Senior Vice President of Core Product Management at The Clearing House, this change has substantially improved transaction processing.
The success of CHIPS in managing such high volumes reflects the growing reliance of financial institutions on its robust clearing and settlement capabilities. As the only high-value payment system in the U.S. to have embraced the ISO 20022 format, CHIPS is not only leading in capacity but is also paving the way for innovations in payment processing.
The record achievements of this year’s Black Friday serve as a testament to the role of the CHIPS network in enhancing global commerce. By enabling the efficient movement of U.S. dollar payments, it supports the status of the U.S. dollar as the world’s primary reserve and settlement currency, facilitating secure and timely transactions across borders.
In the broader spectrum, The Clearing House has been a pioneer in improving the payment landscape in the United States. Operating critical payment networks that process daily volumes exceeding $2 trillion across various payment types like wire, ACH, and real-time payments, The Clearing House holds a distinguished place in the financial technology sector. Its recent innovations, particularly the introduction of the RTP® network, showcase its commitment to enhancing the speed and safety of transactions for both businesses and consumers.
In conclusion, the remarkable performance of the CHIPS network during this year’s Black Friday underscores its vital role in the economic ecosystem. As the digital payment landscape continues to evolve, the network stands at the forefront, exemplifying efficiency, reliability, and strategic advancement in high-value payment processing.
Several factors contributed to this unprecedented volume on Black Friday. One of the primary reasons was that Black Friday occurred after the U.S. Thanksgiving holiday, during which many foreign banks remained operational. As a result, these banks initiated transactions that could not be processed over the Thanksgiving holiday, leading to a surge in settlements on Friday. In fact, 95% of CHIPS payments pertain to U.S. dollar transactions tied to international funds transfers, emphasizing the network's crucial role in global finance.
Moreover, it is significant to note that the CHIPS network has seen increased transaction volumes since it transitioned to the ISO 20022 message format earlier this year in April. The adoption of this standard has aligned CHIPS messages with those used by other international high-value payment systems, which in turn has boosted efficiency and enriched the details accompanying cross-border payments for its users. According to Richard Dzina, Senior Vice President of Core Product Management at The Clearing House, this change has substantially improved transaction processing.
The success of CHIPS in managing such high volumes reflects the growing reliance of financial institutions on its robust clearing and settlement capabilities. As the only high-value payment system in the U.S. to have embraced the ISO 20022 format, CHIPS is not only leading in capacity but is also paving the way for innovations in payment processing.
The record achievements of this year’s Black Friday serve as a testament to the role of the CHIPS network in enhancing global commerce. By enabling the efficient movement of U.S. dollar payments, it supports the status of the U.S. dollar as the world’s primary reserve and settlement currency, facilitating secure and timely transactions across borders.
In the broader spectrum, The Clearing House has been a pioneer in improving the payment landscape in the United States. Operating critical payment networks that process daily volumes exceeding $2 trillion across various payment types like wire, ACH, and real-time payments, The Clearing House holds a distinguished place in the financial technology sector. Its recent innovations, particularly the introduction of the RTP® network, showcase its commitment to enhancing the speed and safety of transactions for both businesses and consumers.
In conclusion, the remarkable performance of the CHIPS network during this year’s Black Friday underscores its vital role in the economic ecosystem. As the digital payment landscape continues to evolve, the network stands at the forefront, exemplifying efficiency, reliability, and strategic advancement in high-value payment processing.
Topics Financial Services & Investing）
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