SWIFT says, through a combination of gpi and domestic real-time payments networks - together with gpi banks – it will facilitate instant international payments with up-front fee and foreign exchange transparency for senders, while also ensuring “ubiquitous availability of instant cross-border payments globally”.
According to SWIFT, these “major advances” will extend the speed and transparency of gpi deeper into domestic markets, enabling banks to leverage their existing investments to deliver a better service to their customers.
“Integrating gpi, through banks, into domestic real-time payment systems reuses existing cross-border and domestic payments infrastructure, thereby minimising implementation costs and avoiding the complexities of adopting new infrastructure,” SWIFT notes.
Harry Newman, Head of Banking, at SWIFT said: “At SWIFT, we are creating a future in which cross-border payments will be as convenient as domestic ones. It is time for the whole community to come together to seize this opportunity and establish a global real-time payments service.
“We will be discussing with the MIs involved in the trials how to progress to live operation and invite all domestic real time payment systems to come and join in this exciting venture. The technology is in place, it is proven and it is now a reality that cross-border payments can be as fast as domestic payments.”
According to SWIFT, Several global trials have demonstrated its ability to deliver international payments, end to end in “just a few seconds” through gpi combined with domestic real-time systems:
- Successful trials with the New Payments Platform (NPP) in Australia delivered payments between Australia and China in 18 seconds
- A trial in Singapore with Fast And Secure Transfers (FAST), involving 17 banks across seven countries, saw the fastest payment in just 13 seconds and payments between all continents settled within 25 seconds.
- And a trial has recently concluded in Europe between the European Central Bank (ECB), SWIFT and a group of 19 banks using the TARGET Instant Payments Settlement (TIPS) platform.
The trial conducted tests with 12 banks sending cross-border payments from 9 countries (Australia, China, Germany, Hong Kong, Italy, Netherlands, Russia, Thailand and United States) into Europe via 5 banks.A speed of 41 seconds has already been achieved in a payment sent from Singapore, cleared via Germany, and credited to the end beneficiary account, with further progress expected as the global instant service is rolled out.