Over half of SWIFT’s cross border traffic now goes through as gpi payments, with full adoption by its 10,000 member banks expected by end-2020.
The world’s 60 biggest banks and hundreds of others have signed up to use SWIFT’s gpi service for cross-border payments. The service is now being used for 55 percent of SWIFT’s cross-border traffic.
SWIFT gpi has increased the speed, transparency and traceability of cross-border payments, with many payments being credited to end beneficiaries within minutes or seconds. According to SWIFT, over 50 percent of payments are credited within 30 minutes, and almost 100 percent within 24 hours. Payments that take longer typically have clear known reasons, such as payment regulations in the receiving country, SWIFT said.
The increased speed helps to reduce the amount of capital banks need to support international payments, while also freeing up cash for end customers and enabling goods to move more quickly, says SWIFT chief marketing officer Luc Meurant.
“The service has dramatically enhanced the customer experience by eliminating many of the issues that have previously led to time-consuming and costly enquiries,” Meurant added. “The transparency it enables not only reduces the total number of enquiries, but also the time needed to handle those that are left.”
During 2018, SWIFT enhanced the service by including a unique end-to-end transaction reference (UETR) in all payments between all 10,000 banks on SWIFT, including for banks that are not yet signed up for the gpi service. From 2019, standard tracking capabilities will also be available to all banks.
Instant cross-border payments using interconnections with real-time domestic systems were successfully trialled with banks in Australia, China, Thailand and Singapore. And a new pilot has started which enables pre-validation of payments to more quickly identify and eliminate issues in payment messages which slow down and raise the cost of transactions.
SWIFT also launched a new analytics tool to give banks insights into their gpi traffic flows, which they can use to optimise payment routing, steer cross-border payment strategies and fine-tune service level agreements.
Universal gpi adoption is expected to be complete by end-2020, when all 10,000 banks on SWIFT’s network will be able to offer “same day end-to-end delivery with full tracking and transparency throughout the payment chain”.