Swift is working with 30 banks on a scheme to set new rules for retail cross-border payments on its network.
The rules are being crafted to ensure full predictability on price and speed for retail transactions - with no hidden fees, full value transfers and instant settlement where domestic infrastructure and regulations allow.
The bank-to-bank messaging network says that participating banks will utilise the advanced capabilities on the Swift platform — typically reserved for wholesale payments — to enhance cross-border retail payments across four billion accounts in over 200 countries.
Thierry Chilosi, chief business officer at Swift, says: “Swift has worked with its community over the past few years to significantly raise the bar on the cross-border payments experience. And now, together with the industry, we are bringing those same benefits to retail customers around the world. The new scheme will ensure that consumers and small businesses will experience fast and predictable international payments, whether sending money to family abroad or paying an overseas supplier.”
Currently 75% of payments sent over the Swift network reach beneficiary banks within 10 minutes.
A new paper published today shows that the Swift cross-border leg accounts for just 20% of the total time of an average cross-border transaction. A full 80% is spent in the last mile, after a payment leaves the Swift network, because of factors including domestic regulations, bank and domestic market infrastructure capabilities and local market practices.
Chilosi adds: “At Swift, we are committed to being an open network and doing all that we can to elevate the end customer experience right across the ecosystem. That includes working with policymakers to identify and address frictions that impact flows regardless of the way value moves—while paving the way for the next generation of payment options.”