UK Finance published its position on 14 August 2026. Its members support the direction of longer settlement hours. They also want an evidence-led transition that protects liquidity, operational resilience and settlement certainty.
The wrong conclusion is that longer Bank of England hours will make every SPI or API a 24/7 business. They will not.
CHAPS is the UK system used to send large or urgent payments in pounds. House purchases are a common example. Buyers should pay attention because longer hours can mean the firm must keep enough money available and provide staff, systems and bank support for more of the day, which may increase costs. This applies when an SPI or API uses CHAPS, directly or through a sponsor bank. If the firm does not use CHAPS and its customers do not need time-sensitive sterling payments, the change is unlikely to affect the deal.
For an acquirer, this creates a five-part test:
- How does the target reach CHAPS and RTGS?
- What service will its bank provide during the extra hours?
- How will the firm fund payments during those hours?
- Can it reconcile payments and manage exceptions safely?
- What will the extended operating model cost?
Do not pay extra for an “always-on” claim until the target can prove all five points.
What has UK Finance said about near-24/7 settlement?
UK Finance supports the direction of longer RTGS and CHAPS hours. Its 14 August article says the transition must be evidence-led and must address liquidity, optional participation and operational resilience.
The industry body says a mixed participation model could avoid disproportionate costs for smaller firms. It also warns that mixed participation must not weaken market liquidity, network effects or settlement certainty. Longer hours leave less time for maintenance, security patching and incident recovery.
What is changing in CHAPS settlement hours?
CHAPS currently operates from 06:00 to 18:00 on working days. The Bank plans to move the opening time to 01:30, Monday to Friday, from September 2027, subject to final confirmation with affected direct participants.
Sending payments before 06:00 will be optional for direct participants. All direct participants will receive payments from 01:30. Each participant will decide when received payments enter its internal systems and when customers are credited, subject to the law that applies.
The later stages are not final policy. The Bank has proposed:
- One weekend day, most likely Sunday, and certain bank holidays, no earlier than 2029.
- Twenty-two hours from Monday to Friday and one weekend day, no earlier than 2031. This is 22×6, not 22×7.
- Possible 22×7 or 23.5×7 operation only as longer-term options.
“Near 24/7” describes the direction. It does not describe today’s service or a final timetable for every stage.
Does every SPI or API access CHAPS directly?
No. The Bank of England’s rules recognise both direct and indirect CHAPS participants.
An indirect participant depends on a commercial contract with its direct participant. That contract can determine which payments are available, the cut-off times, the funding model, service support and what happens during an incident.
This distinction matters in an acquisition. A target may describe its customer service as available at all hours while its underlying bank still applies narrower settlement and support windows. The claim and the payment chain are not the same thing.
What should a buyer test before acquiring an SPI or API?
A buyer should test the full settlement chain, not the target’s opening hours. The five checks below turn the infrastructure change into a useful acquisition test.
1. Map the access route
Identify every material payment rail. Record whether the target participates directly or through another firm. For indirect CHAPS access, name the direct participant and review the contract using the checks in what actually closes a UK payment institution sale.
2. Separate system hours from customer service hours
Ask when the target can send, receive, process and credit funds. These are separate events.
The Bank’s early-morning model makes that distinction clear. A direct participant can receive a CHAPS payment from 01:30 without immediately processing it into a customer account. An indirect participant may face another layer of conditions from its bank.
3. Test the funding model
Record how much cash, collateral or sponsor-bank credit the target needs across the day. Then test the extra window separately.
Longer hours create new periods in which liquidity must be available. UK Finance calls liquidity a key challenge. It has not published evidence that every firm will release working capital or reduce funding costs.
4. Test reconciliation and exception handling
Ask what happens when a payment does not pass straight through. Identify who reviews the exception, who can release it and what happens when a bank or system is unavailable.
The process still needs a named route for sanctions alerts, repairs, outages and unusual payments. A buyer should see the procedure, the system record and the staff coverage.
The same principle applies when a seller presents stablecoin settlement before a sale. A faster rail has little value if the controls around it stop outside office hours.
5. Price the operating model
List the extra people, supplier coverage, system changes and maintenance arrangements needed for longer hours. Check whether contracts with banks and technology providers cover the proposed window.
For context, UK Finance’s 11 August consultation response does not provide an implementation-cost estimate. It asks the Bank for indicative cost ranges, supporting assumptions and an industry impact assessment. Any cost attributed to a particular target would therefore need the target’s own evidence.
What should a seller prepare before going to market?
A seller should prepare a one-page settlement map for each important flow. It should show:
- The payment rail and access route.
- The direct participant or sponsor bank.
- Current sending, receiving and customer-crediting times.
- Cash, collateral or credit needed to fund the flow.
- Reconciliation time and manual intervention rate.
- Out-of-hours staff and supplier support.
- Maintenance, incident and recovery arrangements.
- The expected cost of any longer-hours model.
Do not describe the firm as “24/7-ready” without this evidence. Show what already works, what depends on a third party and what still needs investment.
That evidence belongs beside the operational measures discussed in what buyers actually pay for. It lets a buyer test the claim instead of discounting an unclear cost.
What does the evidence not prove?
The available sources do not prove that longer settlement hours will raise or reduce the value of an SPI or API. They do not provide a cost benchmark for smaller payment firms. They do not show that every cross-border firm will need the same operating model.
The later 2029 and 2031 stages also remain proposals. UK Finance wants the September 2027 early-morning extension to produce evidence before later decisions are fixed.
Our conclusion is narrower. Longer settlement hours create a new diligence question. A buyer should assess the payment chain before paying for readiness. A seller should produce the evidence before making the claim.
Frequently asked questions
What is RTGS?
Real-Time Gross Settlement is the Bank of England service that settles money between participating institutions. It supports CHAPS and other UK payment and securities systems. RTGS hours and customer service hours are not necessarily the same.
What is CHAPS?
CHAPS is the UK’s high-value sterling payment system. Direct participants settle their payment obligations through the Bank of England’s RTGS service. Other institutions can access CHAPS indirectly through a direct participant under a commercial agreement.
When will CHAPS start opening at 01:30?
The Bank of England plans to open CHAPS at 01:30, Monday to Friday, from September 2027. The date remains subject to final confirmation with affected direct participants. The system currently opens at 06:00 on working days.
Is near-24/7 CHAPS already approved?
No. The early-morning extension planned for September 2027 is the confirmed first phase, subject to final timing confirmation. Weekend settlement, 22×6 operation and any later 22×7 or 23.5×7 model remain proposals or longer-term options.
Will customers receive CHAPS payments from 01:30?
Not automatically. Direct participants will receive payments from 01:30, but each participant decides when to process them internally and credit customer accounts, subject to applicable law. Indirect participants also depend on the service agreed with their direct participant.
Why could longer settlement hours cost smaller firms more?
UK Finance identifies staffing, technology, liquidity and operational resilience as cost areas. Smaller firms may have less existing out-of-hours coverage than global institutions. Its 14 August article and consultation response do not provide a standard implementation cost, so each firm needs its own calculation.
What should an SPI or API buyer check?
Check the target’s access route, sponsor-bank terms, service windows, funding needs, reconciliation, exception handling, incident recovery and additional cost. Separate what the target controls from what depends on its bank, processor or another provider.
What should an SPI or API seller prepare?
Prepare a settlement map for every material flow. Show the rail, access route, bank, cut-off times, funding, reconciliation, manual interventions, out-of-hours support and expected investment. Evidence is stronger than an “always-on” description.
Will near-24/7 settlement increase a payment institution’s value?
The published evidence does not establish a valuation effect. Readiness can still matter in diligence when longer hours serve a real customer or corridor need. A buyer should pay for evidenced capability and economics, not the headline alone.
Vertice Fintech brokers SPI and API transactions in the UK. If settlement architecture is material to a target or sale, put the evidence in the deal file before terms are fixed.
Speak to Rodolfo about a confidential mandate.
Primary sources
- Bank of England, Payment and settlement, accessed 26 August 2026, contextual definition
- UK Finance, Towards near 24/7 settlement: UK Finance calls for evidence-led approach, 14 August 2026
- UK Finance, Response to the Bank of England consultation on extending RTGS and CHAPS settlement hours, 11 August 2026, contextual source
- Bank of England, Extending RTGS and CHAPS settlement hours: early morning extension, 24 February 2026
- Bank of England, Extending RTGS and CHAPS settlement hours: next steps towards near 24×7 settlement, 18 May 2026
- Bank of England, CHAPS Reference Manual, version 30 June 2026, section 37.1
