SWIFT announced the launch of a new service to deliver global instant payments by integrating the global payment innovation (gpi), a cross-border payments service with real-time service levels, into domestic instant payments systems around the world.
Through a combination of gpi and domestic real-time payments networks, SWIFT, together with gpi banks, will facilitate instant international payments with upfront fee and foreign exchange transparency for senders, while also ensuring ubiquitous availability of instant cross-border payments globally.
These major advances will extend the speed and transparency of gpi deeper into domestic markets, enabling banks to leverage their existing investments to deliver a better service to their customers. Integrating gpi, through banks, into domestic real-time payment systems reuses existing cross-border and domestic payments infrastructure, thereby minimising implementation costs and avoiding the complexities of adopting new infrastructure.
The service will be available to all types of banks’ end customers, from large multinationals to SMEs and from retail to e-commerce platforms. It will ensure they all reap the benefits of a service that gives speed, up-front clarity on fees and, crucially, predictability on when an end beneficiary’s account will be credited.
The following are several global trials that have demonstrated SWIFT’s ability to deliver international payments, end to end in just a few seconds through gpi, combined with domestic real-time systems:
Below are statements from bank executives on SWIFT’s new service:
Harry Newman, SWIFT’s head of banking, said:
“At SWIFT, we are creating a future in which cross-border payments will be as convenient as domestic ones. It is time for the whole community to come together to seize this opportunity and establish a global real-time payments service.
“We will be discussing with the management information (MI) involved in the trials how to progress to live operation and invite all domestic real time payment systems to come and join in this exciting venture. The technology is in place, it is proven and it is now a reality that cross-border payments can be as fast as domestic payments.”
Shirish Wadivkar, Standard Chartered Bank’s global head of correspondent banking products, said:
“Global commerce in today’s emerging platform economy is increasingly happening in real-time. Customers expect us to move money across borders with a speed to match that. The end-to-end velocity, traceability and transparency of payments is solved with gpi, and with this new offering, we aim to capitalise on the 24/7 availability of instant payment systems everywhere, enabling real-time, round-the-clock payment deliveries.”
Tom Halpin, HSBC’s global head of payments products, global liquidity and cash management, said:
“We are seeing an acceleration of real-time payment schemes across all markets. The key driver is the modern digital customer who is always connected, values convenience and expects a great experience. The combination of SWIFT’s gpi and domestic real-time payments is enabling HSBC to offer that experience across the world.”
Judd Holroyde, Wells Fargo’s head of global product management, said:
“Wells Fargo is committed to the continued advancement of innovation in support of our customers. The SWIFT global instant payment service represents the next generation of SWIFT connectivity with established and emergent real-time schemes around the world. The opportunity to enhance the speed of settlement for customer payments with end-to-end traceability represents an important advancement for the SWIFT community and the customers we serve.”
Ignacio Terol, ECB’s deputy head of division market infrastructure development, said:
“The trial shows that the 24/7/365 availability of central bank money, which TIPS provides can be leveraged not only for instant payments within the European Union (EU), but also for cross-border payments originating beyond the EU. During the trial, the processing time in TIPS was as low as 60 milliseconds. We look forward to working with SWIFT and the TIPS participants on the next steps in this initiative.”
Re-disseminated by The Asian Banker