Treasury Management Internation Logo

SWIFT Pilots gpi Initiative for Low Value Cross-border Payments

Published 

Brussels – SWIFT is piloting a low value cross-border payments service targeted at SMEs and consumers. Currently it has over 20 banks on board with the initiative which leverages gpi and the high-speed rails that are already being used for high-value payments.

SWIFT says the new initiative will enable SMEs and consumers to benefit from predictable payments, with costs and processing times known upfront, and real-time status available to both originator and beneficiary customers via their financial institutions.

Low value cross-border payments builds on SWIFT’s ‘next generation’ strategy, announced recently, that aims to offer instant and frictionless transactions for all “anywhere in the world”.

According to SWIFT, the key pillars underpinning the new low value cross-border payments service include:

  • Easy to use: The service will have a simple and streamlined user experience with security ingrained at every level.
  • Fast payments: Tighter service levels between banks will increase speed. A single payment format will increase straight through processing, while existing services such as pre-validation will remove frictions that cause delays.
  • Competitive prices: Predictable and competitive processing fees are agreed bilaterally between financial institutions, enabling them to provide their end customers with upfront transparency on fees.
  • Secure: Payments will be exchanged through the secure SWIFT network and cleared through best-in-class channels for international payments.

Client expectations

Carlo Palmers, Head of Payments Solutions at SWIFT, explained the rationale for the new service to TMI. In recent years, he says, the domestic payment experience for SMEs and consumers has significantly improved, “and expectations among these groups have heightened to the point where they want fast and transparent payments with a seamless user experience”.

At the same time, he adds, SWIFT gpi transformed the high value cross-border payments experience and gained critical mass rapidly after launch in 2017. “So, it became important for us, alongside our community, to innovate on the strong foundations built by gpi to create a SME and consumer targeted solution for low value cross-border payments that meets their specific needs.”

As part of the new service, payments will be initiated directly from the end users’ bank accounts, exchanged through the secure SWIFT network and cleared through ‘best-in-class’ channels for international payments. “The goal is to provide a simple and streamlined user experience via banks, and SMEs will be able to access this data via the channels they use to interact with their bank,” says Palmers.

The first payments through the new service have already successfully exchanged between banks who are helping to develop it. These include: Bank of China, Barclays, BNP Paribas, BNY Mellon, Deutsche Bank, KEB Hana Bank, MYbank, National Australia Bank, SMBC, Standard Bank, StoneX, UniCredit and Wells Fargo. An additional seven banks will participate in a pilot phase starting at the end of October: Banca Intesa, BBVA, DNB, HSBC, Sberbank of Russia, Societe Generale and Standard Chartered.

The service is expected to be available to all gpi financial institutions in 2021.

Most recent episodes

Why the ‘One Size Fits All’ Approach is Outdated - A Cash Segmentation Treasury Masterclass

With the ongoing low interest-rate environment and increasing regulatory change, it’s more important than ever for treasurers...

23:55

Instant Payments: Instant Rewards

TMI’s Eleanor Hill sits down in the virtual TreasuryCast studio with J.P. Morgan’s Global Head of Real-Time Payments, Cyrus Bhathawalla, to discuss how treasurers can capitalise on the evolving nature of real-time payments. Our guest contemplates the...

23:55

Building a Data Driven Cash Forecast (with Minimum Effort)

TMI's Eleanor Hill is joined by Conor Deegan, CashAnalytics, and TMI Award winner François Masquelier to discuss how to make use of internal and external cash flow data sources to create reliable and accurate cash...

41:34

Tackling the Complexities of IBOR Transition

TMI's Ben Poole speaks to Shaun Kennedy (Associated British Ports), Tassos Dimopoulos (Salmon Software), and Svenja Schumacher (Deloitte), who provide listeners with everything they need to know about the upcoming...

32:27

KYC: How to Streamline Customer Reference Data in Treasury Processes

In this podcast, Cornelia Hesse (EACT/ VDT) speaks to Noëlle Belmimoun (ArcelotMittal/ AFTE), Patrick Holemans (SWIFT), Séverine Le Blévennec (Aliaxis), Tarek Tranberg...

43:05

Becoming a Real-Time Treasury Champion

HSBC experts Thomas Halpin and Suraj Kalati take a seat with TMI Editor Eleanor Hill in the virtual TreasuryCast studio to determine why real-time treasury matters now more than ever. Amongst a wealth of real-time...

21:08

TIS EPO: Reimagining the World of Enterprise Payments

TMI's Eleanor Hill was delighted to invite Joerg Wiemer, Co-Founder and Chief Strategy Officer (TIS) to discuss the concept of Enterprise Payment Optimization (EPO), a reimagining of how organizations can achieve...

15:02

To Step Out or Not to Step Out? That is the Question

Spotify's Senior Treasurer, Niklas Muhrbeck, alongside two experts from J.P. Morgan Asset Management, Jemma Clee and Amir Mota, provides an overview of step-out strategies for corporate investors, and advice on how...

00:00

Advancing Digital Treasury: Next Steps

TMI’s Eleanor Hill welcomes Rowan Austin, Conor Maher and Nick Pedersen (NatWest) into the TreasuryCast studio to determine how treasurers can move beyond a basic digital treasury landscape towards a more efficient...

24:15

Real-Time Cash and Liquidity: Mission Possible

Eleanor Hill (TMI) is joined by Jeroen Brieffies (FrieslandCampina) and Dory Malouf (Kyriba) to consider the relevance and value of real-time cash and liquidity data for treasurers. Our guests tackle the...

38:04