What to Know:
- New SWIFT cross-border payments framework with support from more than 50 global banks has been launched.
- The initiative promises instant settlement, fixed fees, full-value delivery, and end-to-end payment tracking.
- Major remittance markets, including India, China, and Pakistan, will be among the first beneficiaries.
SWIFT is prepared to transform international money transfers with a new framework designed to make cross-border payments faster, cheaper, and more transparent. SWIFT cross-border payments is now backed by more than 50 banks, including JPMorgan, HSBC, Citi, and BNP Paribas. The initiative aims to bring instant settlement, fixed fees, and full payment traceability to some of the world’s busiest remittance corridors by the end of June.
The rollout will initially cover payments sent to countries such as Australia, Bangladesh, Canada, China, Germany, India, Pakistan, Spain, Thailand, the United Kingdom, and the United States. Several of these nations rank among the world’s largest recipients of remittances, making the upgrade significant for millions of consumers and small businesses.
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SWIFT Cross-Border Payments Target Faster and More Predictable Transfers
The new framework of SWIFT cross-border payments is designed to address long-standing frustrations with international transfers. Customers will know the exact cost of a transaction before sending funds. Recipients will receive the full value of the payment without unexpected deductions. Senders will also be able to track payments from start to finish.
SWIFT noted that more than 75% of payments on its network already reach destination banks within 10 minutes. However, delays can still occur during processing and in the final domestic stages of a transfer. The new rules aim to close those gaps and create a smoother experience.
According to Nasir Ahmed, Head of Payments Scheme at SWIFT, the goal is to ensure that everyone can move money internationally with confidence, knowing that fees are affordable, transparent, and fixed from the beginning.
SWIFT Cross-Border Payments Expand Beyond Traditional Banking
The payments framework is part of SWIFT’s broader innovation strategy. Alongside these upgrades, the organization is developing a blockchain-based shared ledger that could support real-time, 24/7 cross-border transactions.
The SWIFT cross-border payments technology is expected to help facilitate the movement of regulated tokenized assets across SWIFT’s network of 11,500 financial institutions operating in more than 200 countries and territories. As more payment corridors come online later this year, SWIFT is positioning itself to play a central role in the next generation of global payments.
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