What are SWIFT gpi Payments?

Faster cross-border payments are the lifeline of any business that operates across multiple countries. Whether it be receiving payments from customers, or paying suppliers and employees on time, every business needs faster ways to transfer money. That is where SWIFT gpi comes in as a handy solution.

What is a SWIFT payment?

SWIFT is a secure payment messaging network that is widely used for international payments. It is the primary interbank messaging service for financial institutions around the world. Over $150 trillion in transactions happen every year over the SWIFT network. But earlier SWIFT standards came with issues such as delayed payments, lack of visibility on funds once they have been sent, and high routing fees (which meant lesser money into the recipient’s account). To solve these problems, SWIFT has launched a new initiative, SWIFT gpi. A number of large financial institutions across the world now offer services that use SWIFT gpi protocols.

List of FIs who have signed up for SWIFT gpi.

What is a SWIFT gpi payment?

SWIFT gpi (gpi stands for Global Payments Innovation) is the newest initiative from SWIFT that aims to improve the experience of making payments via the SWIFT network, for both customers and banks. SWIFT gpi combines the traditional SWIFT messaging and banking system with a new set of rules. This includes end-to-end payment tracking, greater transparency in fees, and payment confirmation when money is credited into a recipient’s account. The new standard aims to meet the demands of businesses and consumers for better pricing, speed, and greater transparency in international payments.

Over 4000 financial institutions are members of SWIFT gpi, processing over $300bn a day. Over 150 currencies are used to send gpi payments. Over 75% of all SWIFT payments are sent via gpi. With SWIFT gpi, parties can send and receive funds quickly and securely to anyone, anywhere in the world. They can track a payment status in real-time and know where their payment is at any point in time. SWIFT gpi makes cross-border payments much easier across banking networks. This helps ensure speed, certainty, and a seamless cross-border payments experience.

What are the benefits of SWIFT gpi?

The main benefits of SWIFT gpi are speed, tracking, accuracy, and transparency.

• Increased payment speed – SWIFT gpi comes with better messaging standards which improves communication between banks, leading to faster payments
• Higher transparency due to end-to-end tracking – All payments made via SWIFT gpi have a Unique End-to-End Transaction Reference (UETR) which helps pinpoint where the funds are in real-time. Businesses and their customers have real-time access to payments data, at any time.
• Greater transparency of fees and charges – Member banks of the SWIFT gpi network must provide full clarity on processing fees and times. This enables businesses and consumers to make better decisions and helps banks improve payments routing.
• Helps maintain complete data records – SWIFT gpi guarantees that 100% remittance data is sent with payments without any changes throughout the payments journey. This helps recipient parties to easily reconcile payments with invoices or orders.

How can businesses use SWIFT gpi?

Speak to your payment service provider to enable payments through SWIFT gpi. A global PSP like Novalnet can advise you on what steps you need to take and help you address your payments-related challenges. We are a trusted partner for global brands. Our state-of-the-art technologies – from instant payment plug-ins to AI-based risk management tools – have been helping Europe’s leading brands solve complex payment challenges and delight customers.
Reach out to us today to know more.

Jose Augustine

Jose Augustine is the Chief Business Development Officer at Novalnet with extensive experience in European payment industry and a knowledge powerhouse.