The new initiative will improve the payments experience for consumers and SMEs, making them faster, more transparent, easier and competitively priced.
SWIFT has announced it is working with over 20 banks to develop a new service to improve the experience for SMEs and consumers who send low-value cross-border payments.
The service will enable bank customers to make faster, easier, predictable and competitively priced payments all around the world, building on “the strength of SWIFT gpi and the high-speed rails that have already transformed the business of high-value payments”.
It will enable consumers and SMEs to make low-value cross-border payments, while benefiting from predictability, known up-front costs and processing times, and real-time status which will be available to both originator and beneficiary customers via their financial institutions.
The new service is a building block for SWIFT’s new strategy, announced last month, to enable instant and frictionless transactions from one account to another, anywhere in the world.
A key aspect of the strategy is to help financial institutions strengthen their position in the B2B space, whilst expanding their capabilities in fast growing segments such as SME and consumer payments.
“The success of SWIFT gpi, which is used by thousands of banks and carries billions of payments globally, enables ever-faster transaction processing times and transparency,” said David Watson, Chief Strategy Officer at SWIFT.
“And it now provides us with the opportunity to transform the experience in the SME and consumer payment markets. We expect that our new gpi initiative for low value cross-border payments will similarly have widespread adoption and help us deliver our vision of making payments brilliantly simple for everyone.”
The first payments through the new service were successfully exchanged between banks participating in the pilot last week.
The service is expected to be available to all gpi financial institutions in 2021.
To find out more about the initiative, register to join SIBOS 2020.