China claims National Advanced Payment

The Chinese National Advanced Payment System (CNAPS) is designed to automate and modernise the payment system throughout the country. It will handle both bulk electronic payments and large-value fund transfers. The system will not differentiate between intra- or inter-bank payments, local or national, to create an integrated national market and will provide same day settlement. The system is intended to provide net settlement for payments systems operated by commercial banks. It is under the control and management of the People's Bank of China (PBC).

The PBC announced that the system, launched in 2005, is now fully operational and processed 650,000 large value inter-bank transfers in the first six months of 2007 - a total amount of 1.6 trillion yuan or $0.2 trillion. The impact of this program, especially taken with the promotion and growth in use of China UnionPay bank cards, will bring greater activity into this cash and e-payment dependent market.