Financial messaging network Swift is to undertake pilot tests of gpi-enabled real-time cross border payment inflows into Australia, plugging in to the country's domestic New Payments Platform.
Today payments into Australia that are sent at the end of the day typically only settle the next day. The new service will provide near-instant availability of funds - including after usual business hours - allowing for faster P2P remittances and SME trade settlement.
The trial follows workshops held earlier this year with leading banks from Australia, China, Singapore and Thailand - including ANZ, Bangkok Bank, Bank of China, China Construction Bank, Commonwealth Bank, DBS, ICBC, Kasikornbank, NAB, Siam Commercial Bank, Standard Chartered Bank and United Overseas Bank - and uses a set of rules defined in consultation with the banks.
Eddie Haddad, managing director at Swift, Asia Pacific, says: "The approach we have taken saves banks from having to invest in new cross-border infrastructure and instead builds on Swift gpi and its connectivity with domestic instant payment systems."
He says the service has been designed to scale and integrate with domestic real-time systems around the Asia Pacific region through gpi members in each system. Other local networks will be added as the pilot test progresses.
Results from the initial test run will be presented at Swift's showpiece annual Sibos event, which is being held this year in Australia in October.